Balfour BeattyBAFBF 78 ROC (Joel Greenblatt) % is 127.99% as of Dec. 2025, which is 42% above its 10-year median of 90.06. GuruFocus rates BAFBF with a GF Score™ of 78/100 and a GF Value™ of $7.82 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,775 Construction companies, Balfour Beatty ranks better than 89.01% 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. Balfour Beatty's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 127.99%.
The historical rank and industry rank for Balfour Beatty's ROC (Joel Greenblatt) % or its related term are showing as below:
BAFBF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 32.56 Med: 90.06 Max: 140.53
Current: 114.5
During the past 13 years, Balfour Beatty's highest ROC (Joel Greenblatt) % was 140.53%. The lowest was 32.56%. And the median was 90.06%.
BAFBF's ROC (Joel Greenblatt) % is ranked better than 89.01% of 1775
companies
in the Construction industry
Industry Median: 19.38
vs BAFBF: 114.50
Balfour Beatty's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 20.70% 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.
Balfour Beatty ROC (Joel Greenblatt) % Related Terms
Balfour Beatty ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Balfour Beatty'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.
BAFBF vs PWR, FIX, EME: ROC (Joel Greenblatt) % Comparison
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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 two times the semi-annual (Dec. 2025) 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 127.99% mean?
Balfour Beatty (BAFBF) has a ROC (Joel Greenblatt) % of 127.99% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Balfour Beatty and its competitors. This is 42% above median its historical median of 90.06. Over the past decade, Balfour Beatty's ROC (Joel Greenblatt) % has ranged from 32.56 to 140.53. According to the industry distribution chart, Balfour Beatty ranks #195 out of 1775 companies in the Construction industry, placing it in the top 11%.
Is Balfour Beatty's ROC (Joel Greenblatt) % too high?
Balfour Beatty's current ROC (Joel Greenblatt) % of 127.99% is 42% above median its 10-year median of 90.06. Over the past 10 years, this metric has ranged from a low of 32.56 to a high of 140.53. The Construction industry median ROC (Joel Greenblatt) % is 19.38. Balfour Beatty's value of 127.99% is 560.4% above this industry median. Based on the distribution chart, Balfour Beatty ranks #195 out of 1775 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Balfour Beatty has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's ROC (Joel Greenblatt) % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #195 out of 1775 companies for ROC (Joel Greenblatt) %. This places Balfour Beatty in the top 11% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.38. Balfour Beatty's value of 127.99% is 560.4% above this benchmark. Historically, Balfour Beatty's own ROC (Joel Greenblatt) % has ranged from 32.56 to 140.53 over the past decade. While the company's 10-year median is 90.06 vs. the industry median of 19.38, Balfour Beatty 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 19.38, based on 1,775 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. Balfour Beatty's current ROC (Joel Greenblatt) % of 127.99% is 560.4% 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 Balfour Beatty and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current ROC (Joel Greenblatt) % is 127.99%, which is 42% above median its own 10-year median of 90.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.82, compared to a current price of $11.20 — trading 43.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 127.99%, which is 42% above median its 10-year median of 90.06 and 560.4% above the Construction industry median of 19.38. Balfour Beatty's overall GF Score™ is 78/100 with 7 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 Balfour Beatty (BAFBF), the current ROC (Joel Greenblatt) % is 127.99% 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 43.2% above its estimated GF Value™ of $7.82.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
ROC (Joel Greenblatt) %: 127.99% (42% above median its 10-year median of 90.06)
GF Value™: $7.82 vs. price of $11.20 (43.2% above fair value)
Industry Position: 560.4% above the Construction median (#195 of 1775)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
78GF Score
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