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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. Ligand Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -196.89%.
The historical rank and industry rank for Ligand Pharmaceuticals's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:LGDN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.28 Med: 227.46 Max: 1841.21
Current: 390.71
During the past 13 years, Ligand Pharmaceuticals's highest ROC (Joel Greenblatt) % was 1841.21%. The lowest was 9.28%. And the median was 227.46%.
FRA:LGDN's ROC (Joel Greenblatt) % is ranked better than 97.35% of 1323
companies
in the Biotechnology industry
Industry Median: -296.6
vs FRA:LGDN: 390.71
Ligand Pharmaceuticals's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 2.10% 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.
Ligand Pharmaceuticals ROC (Joel Greenblatt) % Related Terms
Ligand Pharmaceuticals ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Ligand Pharmaceuticals'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:LGDN vs DFTX, CGON, XENE: ROC (Joel Greenblatt) % Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals'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.
Ligand Pharmaceuticals ROC (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals'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 -196.89% mean?
Ligand Pharmaceuticals (FRA:LGDN) has a ROC (Joel Greenblatt) % of -196.89% 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 Ligand Pharmaceuticals and its competitors. Over the past decade, Ligand Pharmaceuticals' ROC (Joel Greenblatt) % has ranged from 9.28 to 1,841.21. According to the industry distribution chart, Ligand Pharmaceuticals ranks #35 out of 1323 companies in the Biotechnology industry, placing it in the top 2.6%.
Is Ligand Pharmaceuticals' ROC (Joel Greenblatt) % too high?
Ligand Pharmaceuticals' current ROC (Joel Greenblatt) % is -196.89%. Over the past 10 years, this metric has ranged from a low of 9.28 to a high of 1,841.21. Based on the distribution chart, Ligand Pharmaceuticals ranks #35 out of 1323 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' ROC (Joel Greenblatt) % compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #35 out of 1323 companies for ROC (Joel Greenblatt) %. This places Ligand Pharmaceuticals in the top 3% of its industry — outperforming the majority of peers. Historically, Ligand Pharmaceuticals' own ROC (Joel Greenblatt) % has ranged from 9.28 to 1,841.21 over the past decade. 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 Biotechnology company?
A good ROC (Joel Greenblatt) % depends on the Biotechnology industry context. 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 Ligand Pharmaceuticals and its competitors. Ligand Pharmaceuticals's current ROC (Joel Greenblatt) % is -196.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ligand Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ligand Pharmaceuticals (FRA:LGDN) is currently considered Significantly Overvalued. The stock's GF Value™ is €150.69, compared to a current price of €266.00 — trading 76.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is -196.89%. Ligand Pharmaceuticals' overall GF Score™ is 78/100 with 5 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 Ligand Pharmaceuticals (FRA:LGDN), the current ROC (Joel Greenblatt) % is -196.89% 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 Ligand Pharmaceuticals (FRA:LGDN) Overvalued in 2026?
Based on GuruFocus' analysis, Ligand Pharmaceuticals stock appears to be overvalued.
The current stock price of €266.00 is trading 76.5% above its estimated GF Value™ of €150.69.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for FRA:LGDN:
ROC (Joel Greenblatt) %: -196.89%
GF Value™: €150.69 vs. price of €266.00 (76.5% above fair value)
No single metric tells the full story. See the FRA:LGDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
78GF Score
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