Ulta BeautyFRA:34U -1.80%93 ROC (Joel Greenblatt) % is 43.95% as of Apr. 2026, which is 6% below its 10-year median of 46.61. GuruFocus rates FRA:34U with a GF Score™ of 93/100 and a GF Value™ of €494.49 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,122 Retail - Cyclical companies, Ulta Beauty ranks better than 82.53% 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. Ulta Beauty's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 43.95%.
The historical rank and industry rank for Ulta Beauty's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:34U'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.67 Med: 46.61 Max: 58.14
Current: 38.04
During the past 13 years, Ulta Beauty's highest ROC (Joel Greenblatt) % was 58.14%. The lowest was 11.67%. And the median was 46.61%.
FRA:34U's ROC (Joel Greenblatt) % is ranked better than 82.53% of 1122
companies
in the Retail - Cyclical industry
Industry Median: 11.5
vs FRA:34U: 38.04
Ulta Beauty's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 19.70% 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.
Ulta Beauty ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Ulta Beauty'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:34U vs DKS, BBY, TSCO: ROC (Joel Greenblatt) % Comparison
For the Specialty Retail subindustry, Ulta Beauty'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.
Ulta Beauty ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty'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 (Apr. 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 43.95% mean?
Ulta Beauty (FRA:34U) has a ROC (Joel Greenblatt) % of 43.95% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ulta Beauty and its competitors. This is near median its historical median of 46.61. Over the past decade, Ulta Beauty's ROC (Joel Greenblatt) % has ranged from 11.67 to 58.14. According to the industry distribution chart, Ulta Beauty ranks #196 out of 1122 companies in the Retail - Cyclical industry, placing it in the top 17.5%.
Is Ulta Beauty's ROC (Joel Greenblatt) % too high?
Ulta Beauty's current ROC (Joel Greenblatt) % of 43.95% is near median its 10-year median of 46.61. Over the past 10 years, this metric has ranged from a low of 11.67 to a high of 58.14. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.50. Ulta Beauty's value of 43.95% is 282.2% above this industry median. Based on the distribution chart, Ulta Beauty ranks #196 out of 1122 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ulta Beauty has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's ROC (Joel Greenblatt) % compare to DKS and BBY?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #196 out of 1122 companies for ROC (Joel Greenblatt) %. This places Ulta Beauty in the top 18% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.50. Ulta Beauty's value of 43.95% is 282.2% above this benchmark. Historically, Ulta Beauty's own ROC (Joel Greenblatt) % has ranged from 11.67 to 58.14 over the past decade. While the company's 10-year median is 46.61 vs. the industry median of 11.50, Ulta Beauty 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 a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.50, based on 1,122 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. Ulta Beauty's current ROC (Joel Greenblatt) % of 43.95% is 282.2% 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 Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current ROC (Joel Greenblatt) % is 43.95%, which is near median its own 10-year median of 46.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €494.49, compared to a current price of €393.10 — trading 20.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 43.95%, which is near median its 10-year median of 46.61 and 282.2% above the Retail - Cyclical industry median of 11.50. Ulta Beauty's overall GF Score™ is 93/100 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 Ulta Beauty (FRA:34U), the current ROC (Joel Greenblatt) % is 43.95% as of Apr. 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 Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €393.10 is trading 20.5% below its estimated GF Value™ of €494.49.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
ROC (Joel Greenblatt) %: 43.95% (near median its 10-year median of 46.61)
GF Value™: €494.49 vs. price of €393.10 (20.5% below fair value)
Industry Position: 282.2% above the Retail - Cyclical median (#196 of 1122)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
93GF Score
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