LPL Financial HoldingsLPLA +0.69%81 ROC (Joel Greenblatt) % is 144.11% as of Mar. 2026, which is 11% above its 10-year median of 130.20. GuruFocus rates LPLA with a GF Score™ of 81/100 and a GF Value™ of $463.72 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 678 Capital Markets companies, LPL Financial Holdings ranks better than 64.75% 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. LPL Financial Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 144.11%.
The historical rank and industry rank for LPL Financial Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
LPLA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 98.11 Med: 130.2 Max: 171.77
Current: 108.54
During the past 13 years, LPL Financial Holdings's highest ROC (Joel Greenblatt) % was 171.77%. The lowest was 98.11%. And the median was 130.20%.
LPLA's ROC (Joel Greenblatt) % is ranked better than 64.75% of 678
companies
in the Capital Markets industry
Industry Median: 34.64
vs LPLA: 108.54
LPL Financial Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 3.00% 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.
LPL Financial Holdings ROC (Joel Greenblatt) % Related Terms
LPL Financial Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for LPL Financial 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.
LPLA vs TW, CRCL, IREN: ROC (Joel Greenblatt) % Comparison
For the Capital Markets subindustry, LPL Financial 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.
LPL Financial Holdings ROC (Joel Greenblatt) % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings'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 144.11% mean?
LPL Financial Holdings (LPLA) has a ROC (Joel Greenblatt) % of 144.11% 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 LPL Financial Holdings and its competitors. This is 11% above median its historical median of 130.20. Over the past decade, LPL Financial Holdings' ROC (Joel Greenblatt) % has ranged from 98.11 to 171.77. According to the industry distribution chart, LPL Financial Holdings ranks #239 out of 678 companies in the Capital Markets industry, placing it in the top 35.3%.
Is LPL Financial Holdings' ROC (Joel Greenblatt) % too high?
LPL Financial Holdings' current ROC (Joel Greenblatt) % of 144.11% is 11% above median its 10-year median of 130.20. Over the past 10 years, this metric has ranged from a low of 98.11 to a high of 171.77. The Capital Markets industry median ROC (Joel Greenblatt) % is 34.64. LPL Financial Holdings' value of 144.11% is 316% above this industry median. Based on the distribution chart, LPL Financial Holdings ranks #239 out of 678 companies in the Capital Markets industry, which is above the industry midpoint. Overall, LPL Financial Holdings has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' ROC (Joel Greenblatt) % compare to TW and CRCL?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #239 out of 678 companies for ROC (Joel Greenblatt) %. This puts LPL Financial Holdings in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 34.64. LPL Financial Holdings' value of 144.11% is 316% above this benchmark. Historically, LPL Financial Holdings' own ROC (Joel Greenblatt) % has ranged from 98.11 to 171.77 over the past decade. While the company's 10-year median is 130.20 vs. the industry median of 34.64, LPL Financial Holdings 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 Capital Markets company?
The median ROC (Joel Greenblatt) % among Capital Markets companies is 34.64, based on 678 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. LPL Financial Holdings's current ROC (Joel Greenblatt) % of 144.11% is 316% 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 LPL Financial Holdings and its competitors. For the Capital Markets industry, the median ROC (Joel Greenblatt) % is 34.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current ROC (Joel Greenblatt) % is 144.11%, which is 11% above median its own 10-year median of 130.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $463.72, compared to a current price of $295.25 — trading 36.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 144.11%, which is 11% above median its 10-year median of 130.20 and 316% above the Capital Markets industry median of 34.64. LPL Financial Holdings' overall GF Score™ is 81/100 with 4 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 LPL Financial Holdings (LPLA), the current ROC (Joel Greenblatt) % is 144.11% 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $295.25 is trading 36.3% below its estimated GF Value™ of $463.72.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
ROC (Joel Greenblatt) %: 144.11% (11% above median its 10-year median of 130.20)
GF Value™: $463.72 vs. price of $295.25 (36.3% below fair value)
Industry Position: 316% above the Capital Markets median (#239 of 678)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
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