ESABESAB -1.78%79 ROC (Joel Greenblatt) % is 38.59% as of Mar. 2026, which is 21% below its 10-year median of 48.71. GuruFocus rates ESAB with a GF Score™ of 79/100 and a GF Value™ of $113.39 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,060 Industrial Products companies, ESAB ranks better than 86.96% 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. ESAB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 38.59%.
The historical rank and industry rank for ESAB's ROC (Joel Greenblatt) % or its related term are showing as below:
ESAB'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 31.54 Med: 48.71 Max: 63.09
Current: 44.2
During the past 7 years, ESAB's highest ROC (Joel Greenblatt) % was 63.09%. The lowest was 31.54%. And the median was 48.71%.
ESAB's ROC (Joel Greenblatt) % is ranked better than 86.96% of 3060
companies
in the Industrial Products industry
Industry Median: 11.7
vs ESAB: 44.20
ESAB's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 10.90% 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.
The historical data trend for ESAB'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.
ESAB vs CMC, GPGI, WOR: ROC (Joel Greenblatt) % Comparison
For the Metal Fabrication subindustry, ESAB'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.
ESAB ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, ESAB's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where ESAB'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 38.59% mean?
ESAB (ESAB) has a ROC (Joel Greenblatt) % of 38.59% 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 ESAB and its competitors. This is 21% below median its historical median of 48.71. Over the past decade, ESAB's ROC (Joel Greenblatt) % has ranged from 31.54 to 63.09. According to the industry distribution chart, ESAB ranks #399 out of 3060 companies in the Industrial Products industry, placing it in the top 13%.
Is ESAB's ROC (Joel Greenblatt) % too high?
ESAB's current ROC (Joel Greenblatt) % of 38.59% is 21% below median its 10-year median of 48.71. Over the past 10 years, this metric has ranged from a low of 31.54 to a high of 63.09. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.70. ESAB's value of 38.59% is 229.8% above this industry median. Based on the distribution chart, ESAB ranks #399 out of 3060 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, ESAB has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESAB's ROC (Joel Greenblatt) % compare to CMC and GPGI?
According to the Industrial Products industry distribution chart, ESAB ranks #399 out of 3060 companies for ROC (Joel Greenblatt) %. This places ESAB in the top 13% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.70. ESAB's value of 38.59% is 229.8% above this benchmark. Historically, ESAB's own ROC (Joel Greenblatt) % has ranged from 31.54 to 63.09 over the past decade. While the company's 10-year median is 48.71 vs. the industry median of 11.70, ESAB 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 an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.70, based on 3,060 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. ESAB's current ROC (Joel Greenblatt) % of 38.59% is 229.8% 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 ESAB and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESAB's current ROC (Joel Greenblatt) % is 38.59%, which is 21% below median its own 10-year median of 48.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESAB stock overvalued right now?
Based on GuruFocus' analysis, ESAB (ESAB) is currently considered Modestly Undervalued. The stock's GF Value™ is $113.39, compared to a current price of $92.02 — trading 18.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 38.59%, which is 21% below median its 10-year median of 48.71 and 229.8% above the Industrial Products industry median of 11.70. ESAB's overall GF Score™ is 79/100 with 3 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 ESAB (ESAB), the current ROC (Joel Greenblatt) % is 38.59% 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 ESAB (ESAB) Overvalued in 2026?
Based on GuruFocus' analysis, ESAB stock appears to be undervalued.
The current stock price of $92.02 is trading 18.8% below its estimated GF Value™ of $113.39.
GuruFocus considers ESAB to be Modestly Undervalued.
Key valuation signals for ESAB:
ROC (Joel Greenblatt) %: 38.59% (21% below median its 10-year median of 48.71)
GF Value™: $113.39 vs. price of $92.02 (18.8% below fair value)
Industry Position: 229.8% above the Industrial Products median (#399 of 3060)
No single metric tells the full story. See the ESAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW's Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.8 billion in revenue in 2025.
79GF Score
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