China LiteratureCHLLF 71 ROC (Joel Greenblatt) % is -1,254.52% as of Dec. 2025. GuruFocus rates CHLLF with a GF Score™ of 71/100 and a GF Value™ of $4.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 550 Interactive Media companies, China Literature ranks worse than 80% 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. China Literature's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -1,254.52%.
The historical rank and industry rank for China Literature's ROC (Joel Greenblatt) % or its related term are showing as below:
CHLLF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -335.52 Med: 113.31 Max: 1718.02
Current: -246.03
During the past 12 years, China Literature's highest ROC (Joel Greenblatt) % was 1718.02%. The lowest was -335.52%. And the median was 113.31%.
CHLLF's ROC (Joel Greenblatt) % is ranked worse than 80% of 550
companies
in the Interactive Media industry
Industry Median: 20.15
vs CHLLF: -246.03
China Literature's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
China Literature (OTCPK:CHLLF) 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.
China Literature ROC (Joel Greenblatt) % Related Terms
China Literature ROC (Joel Greenblatt) % Historical Data
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The historical data trend for China Literature'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.
CHLLF vs GOOGL, META, SPOT: ROC (Joel Greenblatt) % Comparison
For the Internet Content & Information subindustry, China Literature'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.
China Literature ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where China Literature's ROC (Joel Greenblatt) % falls into.
China Literature 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 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 -1,254.52% mean?
China Literature (CHLLF) has a ROC (Joel Greenblatt) % of -1,254.52% 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 China Literature and its competitors. According to the industry distribution chart, China Literature ranks #440 out of 550 companies in the Interactive Media industry, placing it in the top 80%.
Is China Literature's ROC (Joel Greenblatt) % too high?
China Literature's current ROC (Joel Greenblatt) % is -1,254.52%. Based on the distribution chart, China Literature ranks #440 out of 550 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's ROC (Joel Greenblatt) % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #440 out of 550 companies for ROC (Joel Greenblatt) %. This places China Literature in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 20.15. 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 an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 20.15, based on 550 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. 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 China Literature and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 20.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current ROC (Joel Greenblatt) % is -1,254.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current ROC (Joel Greenblatt) % is -1,254.52%. China Literature's overall GF Score™ is 71/100 with 5 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 China Literature (CHLLF), the current ROC (Joel Greenblatt) % is -1,254.52% 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 China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
ROC (Joel Greenblatt) %: -1,254.52%
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
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