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. Longfor Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -3.13%.
The historical rank and industry rank for Longfor Group Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:RLF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.03 Med: 100.96 Max: 151.89
Current: 12.15
During the past 13 years, Longfor Group Holdings's highest ROC (Joel Greenblatt) % was 151.89%. The lowest was 12.03%. And the median was 100.96%.
FRA:RLF's ROC (Joel Greenblatt) % is ranked worse than 50.86% of 1748
companies
in the Real Estate industry
Industry Median: 12.65
vs FRA:RLF: 12.15
Longfor Group Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -38.70% per year.
Longfor Group Holdings (FRA:RLF) 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.
Longfor Group Holdings ROC (Joel Greenblatt) % Related Terms
Longfor Group Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Longfor Group Holdings'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.
Longfor Group Holdings ROC (Joel Greenblatt) % Chart
Longfor Group Holdings ROC (Joel Greenblatt) % Competitor Comparison
For the Real Estate - Development subindustry, Longfor Group Holdings'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.
Longfor Group Holdings ROC (Joel Greenblatt) % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Longfor Group Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Longfor Group Holdings's ROC (Joel Greenblatt) % falls into.
Longfor Group Holdings ROC (Joel Greenblatt) % Calculation
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 two times the semi-annual (Dec. 2025) 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 -3.13% mean?
Longfor Group Holdings (FRA:RLF) has a ROC (Joel Greenblatt) % of -3.13% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Longfor Group Holdings and its competitors. Over the past decade, Longfor Group Holdings' ROC (Joel Greenblatt) % has ranged from 12.03 to 151.89. According to the industry distribution chart, Longfor Group Holdings ranks #889 out of 1748 companies in the Real Estate industry, placing it in the top 50.9%.
Is Longfor Group Holdings' ROC (Joel Greenblatt) % too high?
Longfor Group Holdings' current ROC (Joel Greenblatt) % is -3.13%. Over the past 10 years, this metric has ranged from a low of 12.03 to a high of 151.89. Based on the distribution chart, Longfor Group Holdings ranks #889 out of 1748 companies in the Real Estate industry, which is below the industry midpoint. Overall, Longfor Group Holdings has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Longfor Group Holdings' ROC (Joel Greenblatt) % compare to competitors?
According to the Real Estate industry distribution chart, Longfor Group Holdings ranks #889 out of 1748 companies for ROC (Joel Greenblatt) %. This places Longfor Group Holdings in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 12.65. Historically, Longfor Group Holdings' own ROC (Joel Greenblatt) % has ranged from 12.03 to 151.89 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 Real Estate company?
The median ROC (Joel Greenblatt) % among Real Estate companies is 12.65, based on 1,748 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. 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 Longfor Group Holdings and its competitors. For the Real Estate industry, the median ROC (Joel Greenblatt) % is 12.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longfor Group Holdings's current ROC (Joel Greenblatt) % is -3.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longfor Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Longfor Group Holdings (FRA:RLF) is currently considered Fairly Valued. The stock's GF Value™ is €0.67, compared to a current price of €0.68 — trading 1.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is -3.13%. Longfor Group Holdings' overall GF Score™ is 71/100 with 8 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 Longfor Group Holdings (FRA:RLF), the current ROC (Joel Greenblatt) % is -3.13% as of Dec. 2025. 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 Longfor Group Holdings (FRA:RLF) Overvalued in 2026?
Based on GuruFocus' analysis, Longfor Group Holdings stock appears to be overvalued.
The current stock price of €0.68 is trading 1.5% above its estimated GF Value™ of €0.67.
GuruFocus considers Longfor Group Holdings to be Fairly Valued.
Key valuation signals for FRA:RLF:
ROC (Joel Greenblatt) %: -3.13%
GF Value™: €0.67 vs. price of €0.68 (1.5% above fair value)
No single metric tells the full story. See the FRA:RLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longfor Group Holdings, or Longfor, is a non-state-owned real estate developer in China with contracted sales value placing it among the top 10 of all China's developers. The company focuses on developing high quality residential projects, as well as operating shopping malls and rental apartments in China's wealthier cities. Property development represents the majority of Longfor's revenue and gross profit, while income from commercial properties, property management and project management services have been growing fast. As at end-2025, Wu Yajun remained the largest shareholder with an over 43% equity interest, while her ex-husband Cai Kui has a 23% stake.
71GF Score
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