Ratos ABFRA:RAZC 41 ROC (Joel Greenblatt) % is 30.29% as of Mar. 2026, which is 39% above its 10-year median of 21.75. GuruFocus rates FRA:RAZC with a GF Score™ of 41/100 and a GF Value™ of €2.01 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,775 Construction companies, Ratos AB ranks worse than 74.76% 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. Ratos AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 30.29%.
The historical rank and industry rank for Ratos AB's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:RAZC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -26.98 Med: 21.75 Max: 53.62
Current: 3.6
During the past 13 years, Ratos AB's highest ROC (Joel Greenblatt) % was 53.62%. The lowest was -26.98%. And the median was 21.75%.
FRA:RAZC's ROC (Joel Greenblatt) % is ranked worse than 74.76% of 1775
companies
in the Construction industry
Industry Median: 19.37
vs FRA:RAZC: 3.60
Ratos AB's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -18.80% per year.
Ratos AB (FRA:RAZC) 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.
The historical data trend for Ratos AB'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:RAZC vs PWR, FIX, EME: ROC (Joel Greenblatt) % Comparison
For the Engineering & Construction subindustry, Ratos AB'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.
Ratos AB ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Ratos AB's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ratos AB'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 30.29% mean?
Ratos AB (FRA:RAZC) has a ROC (Joel Greenblatt) % of 30.29% 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 Ratos AB and its competitors. This is 39% above median its historical median of 21.75. According to the industry distribution chart, Ratos AB ranks #1327 out of 1775 companies in the Construction industry, placing it in the top 74.8%.
Is Ratos AB's ROC (Joel Greenblatt) % too high?
Ratos AB's current ROC (Joel Greenblatt) % of 30.29% is 39% above median its 10-year median of 21.75. The Construction industry median ROC (Joel Greenblatt) % is 19.37. Ratos AB's value of 30.29% is 56.4% above this industry median. Based on the distribution chart, Ratos AB ranks #1327 out of 1775 companies in the Construction industry, which is below the industry midpoint. Overall, Ratos AB has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratos AB's ROC (Joel Greenblatt) % compare to PWR and FIX?
According to the Construction industry distribution chart, Ratos AB ranks #1327 out of 1775 companies for ROC (Joel Greenblatt) %. This places Ratos AB in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.37. Ratos AB's value of 30.29% is 56.4% above this benchmark. While the company's 10-year median is 21.75 vs. the industry median of 19.37, Ratos AB 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 Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.37, based on 1,775 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. Ratos AB's current ROC (Joel Greenblatt) % of 30.29% is 56.4% 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 Ratos AB and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ratos AB's current ROC (Joel Greenblatt) % is 30.29%, which is 39% above median its own 10-year median of 21.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratos AB stock overvalued right now?
Based on GuruFocus' analysis, Ratos AB (FRA:RAZC) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.01, compared to a current price of €2.88 — trading 43.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 30.29%, which is 39% above median its 10-year median of 21.75 and 56.4% above the Construction industry median of 19.37. Ratos AB's overall GF Score™ is 41/100 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 Ratos AB (FRA:RAZC), the current ROC (Joel Greenblatt) % is 30.29% 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 Ratos AB (FRA:RAZC) Overvalued in 2026?
Based on GuruFocus' analysis, Ratos AB stock appears to be overvalued.
The current stock price of €2.88 is trading 43.3% above its estimated GF Value™ of €2.01.
GuruFocus considers Ratos AB to be Significantly Overvalued.
Key valuation signals for FRA:RAZC:
ROC (Joel Greenblatt) %: 30.29% (39% above median its 10-year median of 21.75)
GF Value™: €2.01 vs. price of €2.88 (43.3% above fair value)
Industry Position: 56.4% above the Construction median (#1327 of 1775)
No single metric tells the full story. See the FRA:RAZC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratos AB is an investment company that owns and develops unlisted medium-and small-sized Nordic companies. The company focuses on technological and infrastructure solutions and comprises two business segment; Construction & Services and Consumer. Majority of the revenue is generated from its Construction & Services segment which predominantly includes maintenance of infrastructure within railway, road, energy solutions, and construction of new critical buildings such as hospitals, schools, police stations and governmental buildings in the Nordics. Geographically, the company generates majority of its revenue from Norway and rest from Sweden and other regions.
41GF Score
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