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Armstrong World IndustriesAWI -1.73%71 ROC (Joel Greenblatt) % is 70.91% as of Jun. 2026, which is 55% above its 10-year median of 45.83. GuruFocus rates AWI with a GF Scoreâ„¢ of 71/100 and a GF Valueâ„¢ of $173.75 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,788 Construction companies, Armstrong World Industries ranks better than 79.53% 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. Armstrong World Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 70.91%.
The historical rank and industry rank for Armstrong World Industries's ROC (Joel Greenblatt) % or its related term are showing as below:
AWI'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -17.33 Med: 45.83 Max: 62.35
Current: 58.1
During the past 13 years, Armstrong World Industries's highest ROC (Joel Greenblatt) % was 62.35%. The lowest was -17.33%. And the median was 45.83%.
AWI's ROC (Joel Greenblatt) % is ranked better than 79.53% of 1788
companies
in the Construction industry
Industry Median: 19.52
vs AWI: 58.10
Armstrong World Industries (NYSE:AWI) ROC (Joel Greenblatt) % Explanation
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.
Armstrong World Industries ROC (Joel Greenblatt) % Chart
AWI vs FBIN, BLDR, AAON: ROC (Joel Greenblatt) % Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries'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.
Armstrong World Industries ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's ROC (Joel Greenblatt) % falls into.
Armstrong World Industries ROC (Joel Greenblatt) % Calculation
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 (Jun. 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 70.91% mean?
Armstrong World Industries (AWI) has a ROC (Joel Greenblatt) % of 70.91% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Armstrong World Industries and its competitors. This is 55% above median its historical median of 45.83. According to the industry distribution chart, Armstrong World Industries ranks #366 out of 1788 companies in the Construction industry, placing it in the top 20.5%.
Is Armstrong World Industries' ROC (Joel Greenblatt) % too high?
Armstrong World Industries' current ROC (Joel Greenblatt) % of 70.91% is 55% above median its 10-year median of 45.83. The Construction industry median ROC (Joel Greenblatt) % is 19.52. Armstrong World Industries' value of 70.91% is 263.3% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #366 out of 1788 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Armstrong World Industries has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Armstrong World Industries' ROC (Joel Greenblatt) % compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #366 out of 1788 companies for ROC (Joel Greenblatt) %. This places Armstrong World Industries in the top 21% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.52. Armstrong World Industries' value of 70.91% is 263.3% above this benchmark. While the company's 10-year median is 45.83 vs. the industry median of 19.52, Armstrong World Industries 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 Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.52, based on 1,788 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. Armstrong World Industries's current ROC (Joel Greenblatt) % of 70.91% is 263.3% 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 Armstrong World Industries and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current ROC (Joel Greenblatt) % is 70.91%, which is 55% above median its own 10-year median of 45.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong World Industries stock overvalued right now?
Based on GuruFocus' analysis, Armstrong World Industries (AWI) is currently considered Fairly Valued. The stock's GF Value™ is $173.75, compared to a current price of $182.31 — trading 4.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 70.91%, which is 55% above median its 10-year median of 45.83 and 263.3% above the Construction industry median of 19.52. Armstrong World Industries' overall GF Score™ is 71/100 with 1 warning sign 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 Armstrong World Industries (AWI), the current ROC (Joel Greenblatt) % is 70.91% as of Jun. 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 Armstrong World Industries (AWI) Overvalued in 2026?
Based on GuruFocus' analysis, Armstrong World Industries stock appears to be overvalued.
The current stock price of $182.31 is trading 4.9% above its estimated GF Value™ of $173.75.
GuruFocus considers Armstrong World Industries to be Fairly Valued.
Key valuation signals for AWI:
ROC (Joel Greenblatt) %: 70.91% (55% above median its 10-year median of 45.83)
GF Value™: $173.75 vs. price of $182.31 (4.9% above fair value)
Industry Position: 263.3% above the Construction median (#366 of 1788)
No single metric tells the full story. See the AWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armstrong World Industries Inc designs and manufactures exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions, using materials such as mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber, and glass-reinforced-gypsum. Its segments include Mineral Fiber, which produces suspended mineral fiber and fiberglass ceiling systems and includes results from the Worthington Armstrong Venture (WAVE) for ceiling suspension system (grid) products; Architectural Specialties, which designs, produces, and sources specialty ceilings, walls, and other architectural applications for commercial settings, with revenues mainly project driven; and Unallocated Corporate. The company operates in the United States and Canada.
71GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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