Allison Transmission HoldingsALSN -0.93%95 ROC (Joel Greenblatt) % is 45.80% as of Mar. 2026, which is 57% below its 10-year median of 105.62. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $126.11 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,336 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 94.69% 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. Allison Transmission Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 45.80%.
The historical rank and industry rank for Allison Transmission Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
ALSN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 61.37 Med: 105.62 Max: 188.59
Current: 61.37
During the past 13 years, Allison Transmission Holdings's highest ROC (Joel Greenblatt) % was 188.59%. The lowest was 61.37%. And the median was 105.62%.
ALSN's ROC (Joel Greenblatt) % is ranked better than 94.69% of 1336
companies
in the Vehicles & Parts industry
Industry Median: 11.99
vs ALSN: 61.37
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.
* 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.
ALSN vs ALV, AUR, APTV: ROC (Joel Greenblatt) % Comparison
For the Auto Parts subindustry, Allison Transmission Holdings'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.
Allison Transmission Holdings ROC (Joel Greenblatt) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings'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 (Mar. 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 45.80% mean?
Allison Transmission Holdings (ALSN) has a ROC (Joel Greenblatt) % of 45.80% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Allison Transmission Holdings and its competitors. This is 57% below median its historical median of 105.62. Over the past decade, Allison Transmission Holdings' ROC (Joel Greenblatt) % has ranged from 61.37 to 188.59. According to the industry distribution chart, Allison Transmission Holdings ranks #71 out of 1336 companies in the Vehicles & Parts industry, placing it in the top 5.3%.
Is Allison Transmission Holdings' ROC (Joel Greenblatt) % too high?
Allison Transmission Holdings' current ROC (Joel Greenblatt) % of 45.80% is 57% below median its 10-year median of 105.62. Over the past 10 years, this metric has ranged from a low of 61.37 to a high of 188.59. The Vehicles & Parts industry median ROC (Joel Greenblatt) % is 11.99. Allison Transmission Holdings' value of 45.80% is 282% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #71 out of 1336 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Allison Transmission Holdings has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' ROC (Joel Greenblatt) % compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #71 out of 1336 companies for ROC (Joel Greenblatt) %. This places Allison Transmission Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.99. Allison Transmission Holdings' value of 45.80% is 282% above this benchmark. Historically, Allison Transmission Holdings' own ROC (Joel Greenblatt) % has ranged from 61.37 to 188.59 over the past decade. While the company's 10-year median is 105.62 vs. the industry median of 11.99, Allison Transmission Holdings 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 Vehicles & Parts company?
The median ROC (Joel Greenblatt) % among Vehicles & Parts companies is 11.99, based on 1,336 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. Allison Transmission Holdings's current ROC (Joel Greenblatt) % of 45.80% is 282% 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 Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median ROC (Joel Greenblatt) % is 11.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current ROC (Joel Greenblatt) % is 45.80%, which is 57% below median its own 10-year median of 105.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Fairly Valued. The stock's GF Value™ is $126.11, compared to a current price of $116.37 — trading 7.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 45.80%, which is 57% below median its 10-year median of 105.62 and 282% above the Vehicles & Parts industry median of 11.99. Allison Transmission Holdings' overall GF Score™ is 95/100 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 Allison Transmission Holdings (ALSN), the current ROC (Joel Greenblatt) % is 45.80% as of Mar. 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 Allison Transmission Holdings (ALSN) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued.
The current stock price of $116.37 is trading 7.7% below its estimated GF Value™ of $126.11.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
ROC (Joel Greenblatt) %: 45.80% (57% below median its 10-year median of 105.62)
GF Value™: $126.11 vs. price of $116.37 (7.7% below fair value)
Industry Position: 282% above the Vehicles & Parts median (#71 of 1336)
No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
95GF Score
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