Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Roche Holding AGXSWX:RO -1.41%76 Earnings Yield (Joel Greenblatt) % is 6.48% as of Dec. 2025, which is 6% above its 10-year median of 6.14. GuruFocus rates XSWX:RO with a GF Score™ of 76/100 and a GF Value™ of CHF268.98 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,015 Drug Manufacturers companies, Roche Holding AG ranks better than 67.68% on this metric.
Roche Holding AG's Enterprise Value for the quarter that ended in Dec. 2025 was CHF288,484 Mil.
Roche Holding AG's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was CHF18,319 Mil. Roche Holding AG's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2025 was 6.48%.
The historical rank and industry rank for Roche Holding AG's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
XSWX:RO'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.59 Med: 6.14 Max: 8.02
Current: 6.42
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Roche Holding AG was 8.02%. The lowest was 4.59%. And the median was 6.14%.
XSWX:RO's Earnings Yield (Joel Greenblatt) % is ranked better than 67.68% of 1015
companies
in the Drug Manufacturers industry
Industry Median: 3.22
vs XSWX:RO: 6.42
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Roche Holding AG's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2025 was 2.98%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Roche Holding AG (XSWX:RO) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Roche Holding AG Earnings Yield (Joel Greenblatt) % Related Terms
Roche Holding AG Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Roche Holding AG's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Roche Holding AG Earnings Yield (Joel Greenblatt) % Chart
For the Drug Manufacturers - General subindustry, Roche Holding AG's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Roche Holding AG Earnings Yield (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Roche Holding AG's Earnings Yield (Joel Greenblatt) % falls into.
Roche Holding AG Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Roche Holding AGs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.
What does a Earnings Yield (Joel Greenblatt) % of 6.48% mean?
Roche Holding AG (XSWX:RO) has a Earnings Yield (Joel Greenblatt) % of 6.48% as of Dec. 2025. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Roche Holding AG and its competitors. This is near median its historical median of 6.14. Over the past decade, Roche Holding AG's Earnings Yield (Joel Greenblatt) % has ranged from 4.59 to 8.02. According to the industry distribution chart, Roche Holding AG ranks #328 out of 1015 companies in the Drug Manufacturers industry, placing it in the top 32.3%.
Is Roche Holding AG's Earnings Yield (Joel Greenblatt) % too high?
Roche Holding AG's current Earnings Yield (Joel Greenblatt) % of 6.48% is near median its 10-year median of 6.14. Over the past 10 years, this metric has ranged from a low of 4.59 to a high of 8.02. The Drug Manufacturers industry median Earnings Yield (Joel Greenblatt) % is 3.22. Roche Holding AG's value of 6.48% is 101.2% above this industry median. Based on the distribution chart, Roche Holding AG ranks #328 out of 1015 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Roche Holding AG has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's Earnings Yield (Joel Greenblatt) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #328 out of 1015 companies for Earnings Yield (Joel Greenblatt) %. This puts Roche Holding AG in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.22. Roche Holding AG's value of 6.48% is 101.2% above this benchmark. Historically, Roche Holding AG's own Earnings Yield (Joel Greenblatt) % has ranged from 4.59 to 8.02 over the past decade. While the company's 10-year median is 6.14 vs. the industry median of 3.22, Roche Holding AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Drug Manufacturers company?
The median Earnings Yield (Joel Greenblatt) % among Drug Manufacturers companies is 3.22, based on 1,015 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roche Holding AG's current Earnings Yield (Joel Greenblatt) % of 6.48% is 101.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median Earnings Yield (Joel Greenblatt) % is 3.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current Earnings Yield (Joel Greenblatt) % is 6.48%, which is near median its own 10-year median of 6.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:RO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF268.98, compared to a current price of CHF336.20 — trading 25% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.48%, which is near median its 10-year median of 6.14 and 101.2% above the Drug Manufacturers industry median of 3.22. Roche Holding AG's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Roche Holding AG (XSWX:RO), the current Earnings Yield (Joel Greenblatt) % is 6.48% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Roche Holding AG (XSWX:RO) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF336.20 is trading 25% above its estimated GF Value™ of CHF268.98.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:RO:
Earnings Yield (Joel Greenblatt) %: 6.48% (near median its 10-year median of 6.14)
GF Value™: CHF268.98 vs. price of CHF336.20 (25% above fair value)
Industry Position: 101.2% above the Drug Manufacturers median (#328 of 1015)
No single metric tells the full story. See the XSWX:RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
76GF Score
Get the complete analysis for XSWX:RO
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:RO has been successfully added to your 
