Robinhood Markets (LIM:HOOD) ROC (Joel Greenblatt) %: 18.18% (As of Mar. 2026)


LIM:HOOD Robinhood Markets Inc LIM:HOOD
56 GF Score
Price $115.00
GF Value $63.34
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Robinhood Markets ROC (Joel Greenblatt) %?

Robinhood Markets LIM:HOOD 56 ROC (Joel Greenblatt) % is 18.18% as of Mar. 2026. GuruFocus rates LIM:HOOD with a GF Score™ of 56/100 and a GF Value™ of $63.34 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 675 Capital Markets companies, Robinhood Markets ranks worse than 52.89% 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. Robinhood Markets's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.18%.

The historical rank and industry rank for Robinhood Markets's ROC (Joel Greenblatt) % or its related term are showing as below:

LIM:HOOD' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -73.52   Med: -12.93   Max: 37.81
Current: 28.67

During the past 7 years, Robinhood Markets's highest ROC (Joel Greenblatt) % was 37.81%. The lowest was -73.52%. And the median was -12.93%.

LIM:HOOD's ROC (Joel Greenblatt) % is ranked worse than
52.89% of 675 companies
in the Capital Markets industry
Industry Median: 35.03 vs LIM:HOOD: 28.67

Robinhood Markets's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Robinhood Markets  (LIM:HOOD) 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.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Robinhood Markets ROC (Joel Greenblatt) % Related Terms


Robinhood Markets ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Robinhood Markets'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.

Robinhood Markets ROC (Joel Greenblatt) % Chart

Robinhood Markets Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial -73.52 -56.21 -47.41 37.81 32.29

Robinhood Markets Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.36 32.73 35.31 30.08 18.18

LIM:HOOD vs IBKR, LPLA, SCHW: ROC (Joel Greenblatt) % Comparison

For the Capital Markets subindustry, Robinhood Markets'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.


Robinhood Markets ROC (Joel Greenblatt) % vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Robinhood Markets's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Robinhood Markets's ROC (Joel Greenblatt) % falls into.


LIM:HOOD
56GF Score
Robinhood Markets Inc LIM:HOOD
ROC (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Robinhood Markets 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:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

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.

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(18420 + 0 + 7434) - (12449 + 0 + 4696)
=8709

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(18599 + 0 + 12628) - (17302 + 0 + 4865)
=9060

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Robinhood Markets for the quarter that ended in Mar. 2026 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1644/( ( (154 + max(8709, 0)) + (162 + max(9060, 0)) )/ 2 )
=1644/( ( 8863 + 9222 )/ 2 )
=1644/9042.5
=18.18 %

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 18.18% mean?
Robinhood Markets (LIM:HOOD) has a ROC (Joel Greenblatt) % of 18.18% 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 Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #357 out of 675 companies in the Capital Markets industry, placing it in the top 52.9%.
Is Robinhood Markets' ROC (Joel Greenblatt) % too high?
Robinhood Markets' current ROC (Joel Greenblatt) % is 18.18%. The Capital Markets industry median ROC (Joel Greenblatt) % is 35.03. Robinhood Markets' value of 18.18% is 48.1% below this industry median. Based on the distribution chart, Robinhood Markets ranks #357 out of 675 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Robinhood Markets has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' ROC (Joel Greenblatt) % compare to IBKR and LPLA?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #357 out of 675 companies for ROC (Joel Greenblatt) %. This places Robinhood Markets in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 35.03. Robinhood Markets' value of 18.18% is 48.1% below this benchmark. 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 Capital Markets company?
The median ROC (Joel Greenblatt) % among Capital Markets companies is 35.03, based on 675 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. Robinhood Markets's current ROC (Joel Greenblatt) % of 18.18% is 48.1% below 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 Robinhood Markets and its competitors. For the Capital Markets industry, the median ROC (Joel Greenblatt) % is 35.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current ROC (Joel Greenblatt) % is 18.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (LIM:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $63.34, compared to a current price of $115.00 — trading 81.6% above its estimated fair value. The current ROC (Joel Greenblatt) % is 18.18% and 48.1% below the Capital Markets industry median of 35.03. Robinhood Markets' overall GF Score™ is 56/100 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 Robinhood Markets (LIM:HOOD), the current ROC (Joel Greenblatt) % is 18.18% 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 Robinhood Markets (LIM:HOOD) Overvalued in 2026?

Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued. The current stock price of $115.00 is trading 81.6% above its estimated GF Value™ of $63.34. GuruFocus considers Robinhood Markets to be Significantly Overvalued.

Key valuation signals for LIM:HOOD:

  • ROC (Joel Greenblatt) %: 18.18%
  • GF Value™: $63.34 vs. price of $115.00 (81.6% above fair value)
  • GF Score™: 56/100 with 5 warning signs
  • Industry Position: 48.1% below the Capital Markets median (#357 of 675)

No single metric tells the full story. See the LIM:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Robinhood Markets Business Description

Address 85 Willow Road, Menlo Park, CA, USA, 94025
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
56GF Score

Get the complete analysis for LIM:HOOD

ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$115.00
Price
$63.34
GF Value