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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. Gaotu Techedu's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1.84%.
The historical rank and industry rank for Gaotu Techedu's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:18WA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1293.27 Med: -38.39 Max: 158.08
Current: -38.2
During the past 9 years, Gaotu Techedu's highest ROC (Joel Greenblatt) % was 158.08%. The lowest was -1293.27%. And the median was -38.39%.
FRA:18WA's ROC (Joel Greenblatt) % is ranked worse than 85.17% of 263
companies
in the Education industry
Industry Median: 18.42
vs FRA:18WA: -38.20
Gaotu Techedu's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 23.70% 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.
Gaotu Techedu ROC (Joel Greenblatt) % Related Terms
Gaotu Techedu ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Gaotu Techedu'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.
FRA:18WA vs KLC, FC, JDZG: ROC (Joel Greenblatt) % Comparison
For the Education & Training Services subindustry, Gaotu Techedu'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.
Gaotu Techedu ROC (Joel Greenblatt) % vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu'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 1.84% mean?
Gaotu Techedu (FRA:18WA) has a ROC (Joel Greenblatt) % of 1.84% 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 Gaotu Techedu and its competitors. According to the industry distribution chart, Gaotu Techedu ranks #224 out of 263 companies in the Education industry, placing it in the top 85.2%.
Is Gaotu Techedu's ROC (Joel Greenblatt) % too high?
Gaotu Techedu's current ROC (Joel Greenblatt) % is 1.84%. The Education industry median ROC (Joel Greenblatt) % is 18.42. Gaotu Techedu's value of 1.84% is 90% below this industry median. Based on the distribution chart, Gaotu Techedu ranks #224 out of 263 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's ROC (Joel Greenblatt) % compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #224 out of 263 companies for ROC (Joel Greenblatt) %. This places Gaotu Techedu in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 18.42. Gaotu Techedu's value of 1.84% is 90% below 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 an Education company?
The median ROC (Joel Greenblatt) % among Education companies is 18.42, based on 263 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. Gaotu Techedu's current ROC (Joel Greenblatt) % of 1.84% is 90% below 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 Gaotu Techedu and its competitors. For the Education industry, the median ROC (Joel Greenblatt) % is 18.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current ROC (Joel Greenblatt) % is 1.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Gaotu Techedu (FRA:18WA) has a current ROC (Joel Greenblatt) % of 1.84%. The stock's GF Value™ is €4.80, compared to a current price of €1.37 — trading 71.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 1.84% and 90% below the Education industry median of 18.42. Gaotu Techedu's overall GF Score™ is 66/100 with 2 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 Gaotu Techedu (FRA:18WA), the current ROC (Joel Greenblatt) % is 1.84% 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 Gaotu Techedu (FRA:18WA) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of €1.37 is trading 71.5% below its estimated GF Value™ of €4.80.
Key valuation signals for FRA:18WA:
ROC (Joel Greenblatt) %: 1.84%
GF Value™: €4.80 vs. price of €1.37 (71.5% below fair value)
Industry Position: 90% below the Education median (#224 of 263)
No single metric tells the full story. See the FRA:18WA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
66GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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