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AMTD DigitalHKD -0.62%63 ROC (Joel Greenblatt) % is 34.26% as of Oct. 2025, which is 50% below its 10-year median of 68.06. GuruFocus rates HKD with a GF Score™ of 63/100 and a GF Value™ of $4.79 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 2,816 Software companies, AMTD Digital ranks better than 57.1% 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. AMTD Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2025 was 34.26%.
The historical rank and industry rank for AMTD Digital's ROC (Joel Greenblatt) % or its related term are showing as below:
HKD'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 25.68 Med: 68.06 Max: 160388.89
Current: 37.78
During the past 7 years, AMTD Digital's highest ROC (Joel Greenblatt) % was 160388.89%. The lowest was 25.68%. And the median was 68.06%.
HKD's ROC (Joel Greenblatt) % is ranked better than 57.1% of 2816
companies
in the Software industry
Industry Median: 20.03
vs HKD: 37.78
AMTD Digital's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
AMTD Digital (NYSE:HKD) 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.
AMTD Digital ROC (Joel Greenblatt) % Related Terms
AMTD Digital ROC (Joel Greenblatt) % Historical Data
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The historical data trend for AMTD Digital'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.
HKD vs OOMA, SMWB, CRNC: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, AMTD Digital'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.
AMTD Digital ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, AMTD Digital's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where AMTD Digital'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 two times the semi-annual (Oct. 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 34.26% mean?
AMTD Digital (HKD) has a ROC (Joel Greenblatt) % of 34.26% as of Oct. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on AMTD Digital and its competitors. This is 50% below median its historical median of 68.06. Over the past decade, AMTD Digital's ROC (Joel Greenblatt) % has ranged from 25.68 to 160,388.89. According to the industry distribution chart, AMTD Digital ranks #1208 out of 2816 companies in the Software industry, placing it in the top 42.9%.
Is AMTD Digital's ROC (Joel Greenblatt) % too high?
AMTD Digital's current ROC (Joel Greenblatt) % of 34.26% is 50% below median its 10-year median of 68.06. Over the past 10 years, this metric has ranged from a low of 25.68 to a high of 160,388.89. The Software industry median ROC (Joel Greenblatt) % is 20.03. AMTD Digital's value of 34.26% is 71% above this industry median. Based on the distribution chart, AMTD Digital ranks #1208 out of 2816 companies in the Software industry, which is above the industry midpoint. Overall, AMTD Digital has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AMTD Digital's ROC (Joel Greenblatt) % compare to OOMA and SMWB?
According to the Software industry distribution chart, AMTD Digital ranks #1208 out of 2816 companies for ROC (Joel Greenblatt) %. This puts AMTD Digital in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 20.03. AMTD Digital's value of 34.26% is 71% above this benchmark. Historically, AMTD Digital's own ROC (Joel Greenblatt) % has ranged from 25.68 to 160,388.89 over the past decade. While the company's 10-year median is 68.06 vs. the industry median of 20.03, AMTD Digital 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 20.03, based on 2,816 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. AMTD Digital's current ROC (Joel Greenblatt) % of 34.26% is 71% 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 AMTD Digital and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AMTD Digital's current ROC (Joel Greenblatt) % is 34.26%, which is 50% below median its own 10-year median of 68.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AMTD Digital stock overvalued right now?
Based on GuruFocus' analysis, AMTD Digital (HKD) is currently considered Possible Value Trap. The stock's GF Value™ is $4.79, compared to a current price of $1.61 — trading 66.4% below its estimated fair value. The current ROC (Joel Greenblatt) % is 34.26%, which is 50% below median its 10-year median of 68.06 and 71% above the Software industry median of 20.03. AMTD Digital's overall GF Score™ is 63/100 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 AMTD Digital (HKD), the current ROC (Joel Greenblatt) % is 34.26% as of Oct. 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 AMTD Digital (HKD) Overvalued in 2026?
Based on GuruFocus' analysis, AMTD Digital stock appears to be undervalued.
The current stock price of $1.61 is trading 66.4% below its estimated GF Value™ of $4.79.
GuruFocus considers AMTD Digital to be Possible Value Trap.
Key valuation signals for HKD:
ROC (Joel Greenblatt) %: 34.26% (50% below median its 10-year median of 68.06)
GF Value™: $4.79 vs. price of $1.61 (66.4% below fair value)
Industry Position: 71% above the Software median (#1208 of 2816)
No single metric tells the full story. See the HKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AMTD Digital Inc along with its subsidiaries, is mainly involved in the provision of digital solutions services. Its reportable segments are digital solutions services segment; hotel operations, hospitality and VIP services segment; media and entertainment services segment; and Strategic investments. The company generates maximum revenue from Digital solutions services segment, which provides its institutional and corporate clients with exclusive, paid access to enhance their investor communication, investor relations and corporate communication to potentially maximize their valuation, as well as providing digital solution services. Geographically, the company generates revenue from China, Hong Kong, Europe, Americas and Southeast Asia.
63GF Score
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