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. Direct Digital Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -2,428.02%.
The historical rank and industry rank for Direct Digital Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
DRCT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -2509.1 Med: -357.03 Max: 158.15
Current: -2509.1
During the past 7 years, Direct Digital Holdings's highest ROC (Joel Greenblatt) % was 158.15%. The lowest was -2509.10%. And the median was -357.03%.
DRCT's ROC (Joel Greenblatt) % is ranked worse than 96.75% of 1016
companies
in the Media - Diversified industry
Industry Median: 9.365
vs DRCT: -2509.10
Direct Digital Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Direct Digital Holdings (NAS:DRCT) 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.
Direct Digital Holdings ROC (Joel Greenblatt) % Related Terms
Direct Digital Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Direct Digital Holdings'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.
Direct Digital Holdings ROC (Joel Greenblatt) % Chart
DRCT vs HAO, DBMM, CNET: ROC (Joel Greenblatt) % Comparison
For the Advertising Agencies subindustry, Direct Digital 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.
Direct Digital Holdings ROC (Joel Greenblatt) % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's ROC (Joel Greenblatt) % falls into.
Direct Digital Holdings 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 (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 -2,428.02% mean?
Direct Digital Holdings (DRCT) has a ROC (Joel Greenblatt) % of -2,428.02% 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 Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #983 out of 1016 companies in the Media - Diversified industry, placing it in the top 96.8%.
Is Direct Digital Holdings' ROC (Joel Greenblatt) % too high?
Direct Digital Holdings' current ROC (Joel Greenblatt) % is -2,428.02%. Based on the distribution chart, Direct Digital Holdings ranks #983 out of 1016 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' ROC (Joel Greenblatt) % compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #983 out of 1016 companies for ROC (Joel Greenblatt) %. This places Direct Digital Holdings in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 9.37. 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 Media - Diversified company?
The median ROC (Joel Greenblatt) % among Media - Diversified companies is 9.37, based on 1,016 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 Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median ROC (Joel Greenblatt) % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current ROC (Joel Greenblatt) % is -2,428.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.83, compared to a current price of $2.76 — trading 86.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is -2,428.02%. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 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 Direct Digital Holdings (DRCT), the current ROC (Joel Greenblatt) % is -2,428.02% 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 Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $2.76 is trading 86.7% below its estimated GF Value™ of $20.83.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
ROC (Joel Greenblatt) %: -2,428.02%
GF Value™: $20.83 vs. price of $2.76 (86.7% below fair value)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score
Get the complete analysis for DRCT
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DRCT has been successfully added to your 
