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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. Clearwater Analytics Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 37.83%.
The historical rank and industry rank for Clearwater Analytics Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
CWAN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -256.14 Med: -6.63 Max: 361.04
Current: -5.29
During the past 7 years, Clearwater Analytics Holdings's highest ROC (Joel Greenblatt) % was 361.04%. The lowest was -256.14%. And the median was -6.63%.
CWAN's ROC (Joel Greenblatt) % is ranked worse than 64.31% of 2810
companies
in the Software industry
Industry Median: 19.94
vs CWAN: -5.29
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.
CWAN vs IDCC, CHYM, TTAN: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, Clearwater Analytics 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.
Clearwater Analytics Holdings ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics 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 37.83% mean?
Clearwater Analytics Holdings (CWAN) has a ROC (Joel Greenblatt) % of 37.83% 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 Clearwater Analytics Holdings and its competitors. According to the industry distribution chart, Clearwater Analytics Holdings ranks #1807 out of 2810 companies in the Software industry, placing it in the top 64.3%.
Is Clearwater Analytics Holdings' ROC (Joel Greenblatt) % too high?
Clearwater Analytics Holdings' current ROC (Joel Greenblatt) % is 37.83%. The Software industry median ROC (Joel Greenblatt) % is 19.94. Clearwater Analytics Holdings' value of 37.83% is 89.7% above this industry median. Based on the distribution chart, Clearwater Analytics Holdings ranks #1807 out of 2810 companies in the Software industry, which is below the industry midpoint. Overall, Clearwater Analytics Holdings has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' ROC (Joel Greenblatt) % compare to IDCC and CHYM?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #1807 out of 2810 companies for ROC (Joel Greenblatt) %. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.94. Clearwater Analytics Holdings' value of 37.83% is 89.7% above this benchmark. 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.94, based on 2,810 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. Clearwater Analytics Holdings's current ROC (Joel Greenblatt) % of 37.83% is 89.7% 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 Clearwater Analytics Holdings and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current ROC (Joel Greenblatt) % is 37.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.14, compared to a current price of $24.56 — trading 23.6% below its estimated fair value. The current ROC (Joel Greenblatt) % is 37.83% and 89.7% above the Software industry median of 19.94. Clearwater Analytics Holdings' overall GF Score™ is 60/100 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 Clearwater Analytics Holdings (CWAN), the current ROC (Joel Greenblatt) % is 37.83% 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 Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 23.6% below its estimated GF Value™ of $32.14.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
ROC (Joel Greenblatt) %: 37.83%
GF Value™: $32.14 vs. price of $24.56 (23.6% below fair value)
Industry Position: 89.7% above the Software median (#1807 of 2810)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics Holdings Business Description
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
60GF Score
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