NVIDIANVDA -1.39%96 ROC (Joel Greenblatt) % is 626.90% as of Apr. 2026, which is 233% above its 10-year median of 188.19. GuruFocus rates NVDA with a GF Score™ of 96/100 and a GF Value™ of $354.30 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,025 Semiconductors companies, NVIDIA ranks better than 99.02% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. NVIDIA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 626.90%.
The historical rank and industry rank for NVIDIA's ROC (Joel Greenblatt) % or its related term are showing as below:
NVDA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 53.78 Med: 188.19 Max: 505.57
Current: 505.57
During the past 13 years, NVIDIA's highest ROC (Joel Greenblatt) % was 505.57%. The lowest was 53.78%. And the median was 188.19%.
NVDA's ROC (Joel Greenblatt) % is ranked better than 99.02% of 1025
companies
in the Semiconductors industry
Industry Median: 8.19
vs NVDA: 505.57
NVIDIA's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 33.80% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for NVIDIA's ROC (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.
NVDA vs AVGO, MU, AMD: ROC (Joel Greenblatt) % Comparison
For the Semiconductors subindustry, NVIDIA's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (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.
NVIDIA ROC (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NVIDIA's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where NVIDIA's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 626.90% mean?
NVIDIA (NVDA) has a ROC (Joel Greenblatt) % of 626.90% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on NVIDIA and its competitors. This is 233% above median its historical median of 188.19. Over the past decade, NVIDIA's ROC (Joel Greenblatt) % has ranged from 53.78 to 505.57. According to the industry distribution chart, NVIDIA ranks #10 out of 1025 companies in the Semiconductors industry, placing it in the top 1%.
Is NVIDIA's ROC (Joel Greenblatt) % too high?
NVIDIA's current ROC (Joel Greenblatt) % of 626.90% is 233% above median its 10-year median of 188.19. Over the past 10 years, this metric has ranged from a low of 53.78 to a high of 505.57. The Semiconductors industry median ROC (Joel Greenblatt) % is 8.19. NVIDIA's value of 626.90% is 7554.5% above this industry median. Based on the distribution chart, NVIDIA ranks #10 out of 1025 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NVIDIA has a GF Score™ of 96/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NVIDIA's ROC (Joel Greenblatt) % compare to AVGO and MU?
According to the Semiconductors industry distribution chart, NVIDIA ranks #10 out of 1025 companies for ROC (Joel Greenblatt) %. This places NVIDIA in the top 1% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.19. NVIDIA's value of 626.90% is 7554.5% above this benchmark. Historically, NVIDIA's own ROC (Joel Greenblatt) % has ranged from 53.78 to 505.57 over the past decade. While the company's 10-year median is 188.19 vs. the industry median of 8.19, NVIDIA 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 ROC (Joel Greenblatt) % for a Semiconductors company?
The median ROC (Joel Greenblatt) % among Semiconductors companies is 8.19, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NVIDIA's current ROC (Joel Greenblatt) % of 626.90% is 7554.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on NVIDIA and its competitors. For the Semiconductors industry, the median ROC (Joel Greenblatt) % is 8.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NVIDIA's current ROC (Joel Greenblatt) % is 626.90%, which is 233% above median its own 10-year median of 188.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NVIDIA stock overvalued right now?
Based on GuruFocus' analysis, NVIDIA (NVDA) is currently considered Possible Value Trap. The stock's GF Value™ is $354.30, compared to a current price of $194.83 — trading 45% below its estimated fair value. The current ROC (Joel Greenblatt) % is 626.90%, which is 233% above median its 10-year median of 188.19 and 7554.5% above the Semiconductors industry median of 8.19. NVIDIA's overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For NVIDIA (NVDA), the current ROC (Joel Greenblatt) % is 626.90% as of Apr. 2026. 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 NVIDIA (NVDA) Overvalued in 2026?
Based on GuruFocus' analysis, NVIDIA stock appears to be undervalued.
The current stock price of $194.83 is trading 45% below its estimated GF Value™ of $354.30.
GuruFocus considers NVIDIA to be Possible Value Trap.
Key valuation signals for NVDA:
ROC (Joel Greenblatt) %: 626.90% (233% above median its 10-year median of 188.19)
GF Value™: $354.30 vs. price of $194.83 (45% below fair value)
Industry Position: 7554.5% above the Semiconductors median (#10 of 1025)
No single metric tells the full story. See the NVDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence to run large language models. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.
96GF Score
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