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Derwent LondonLSE:DLN +1.09%71 ROC (Joel Greenblatt) % is 203.37% as of Dec. 2025, which is 12% below its 10-year median of 230.86. GuruFocus rates LSE:DLN with a GF Score™ of 71/100 and a GF Value™ of £22.72 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 583 REITs companies, Derwent London ranks better than 53.86% 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. Derwent London's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 203.37%.
The historical rank and industry rank for Derwent London's ROC (Joel Greenblatt) % or its related term are showing as below:
LSE:DLN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -842.8 Med: 230.86 Max: 751.05
Current: 227.03
During the past 13 years, Derwent London's highest ROC (Joel Greenblatt) % was 751.05%. The lowest was -842.80%. And the median was 230.86%.
LSE:DLN's ROC (Joel Greenblatt) % is ranked better than 53.86% of 583
companies
in the REITs industry
Industry Median: 179.69
vs LSE:DLN: 227.03
Derwent London's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Derwent London (LSE:DLN) 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.
Derwent London ROC (Joel Greenblatt) % Related Terms
Derwent London ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Derwent London'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.
LSE:DLN vs BXP, ARE, VNO: ROC (Joel Greenblatt) % Comparison
For the REIT - Office subindustry, Derwent London'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.
Derwent London ROC (Joel Greenblatt) % vs REITs Industry
For the REITs industry and Real Estate sector, Derwent London's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Derwent London's ROC (Joel Greenblatt) % falls into.
Derwent London 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 203.37% mean?
Derwent London (LSE:DLN) has a ROC (Joel Greenblatt) % of 203.37% 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 Derwent London and its competitors. This is 12% below median its historical median of 230.86. According to the industry distribution chart, Derwent London ranks #269 out of 583 companies in the REITs industry, placing it in the top 46.1%.
Is Derwent London's ROC (Joel Greenblatt) % too high?
Derwent London's current ROC (Joel Greenblatt) % of 203.37% is 12% below median its 10-year median of 230.86. The REITs industry median ROC (Joel Greenblatt) % is 179.69. Derwent London's value of 203.37% is 13.2% above this industry median. Based on the distribution chart, Derwent London ranks #269 out of 583 companies in the REITs industry, which is above the industry midpoint. Overall, Derwent London has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Derwent London's ROC (Joel Greenblatt) % compare to BXP and ARE?
According to the REITs industry distribution chart, Derwent London ranks #269 out of 583 companies for ROC (Joel Greenblatt) %. This puts Derwent London in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 179.69. Derwent London's value of 203.37% is 13.2% above this benchmark. While the company's 10-year median is 230.86 vs. the industry median of 179.69, Derwent London 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 REITs company?
The median ROC (Joel Greenblatt) % among REITs companies is 179.69, based on 583 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. Derwent London's current ROC (Joel Greenblatt) % of 203.37% is 13.2% 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 Derwent London and its competitors. For the REITs industry, the median ROC (Joel Greenblatt) % is 179.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Derwent London's current ROC (Joel Greenblatt) % is 203.37%, which is 12% below median its own 10-year median of 230.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Derwent London stock overvalued right now?
Based on GuruFocus' analysis, Derwent London (LSE:DLN) is currently considered Modestly Undervalued. The stock's GF Value™ is £22.72, compared to a current price of £20.38 — trading 10.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 203.37%, which is 12% below median its 10-year median of 230.86 and 13.2% above the REITs industry median of 179.69. Derwent London's overall GF Score™ is 71/100 with 10 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 Derwent London (LSE:DLN), the current ROC (Joel Greenblatt) % is 203.37% 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 Derwent London (LSE:DLN) Overvalued in 2026?
Based on GuruFocus' analysis, Derwent London stock appears to be undervalued.
The current stock price of £20.38 is trading 10.3% below its estimated GF Value™ of £22.72.
GuruFocus considers Derwent London to be Modestly Undervalued.
Key valuation signals for LSE:DLN:
ROC (Joel Greenblatt) %: 203.37% (12% below median its 10-year median of 230.86)
GF Value™: £22.72 vs. price of £20.38 (10.3% below fair value)
Industry Position: 13.2% above the REITs median (#269 of 583)
No single metric tells the full story. See the LSE:DLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Derwent London PLC is London's inventive office specialist property regenerators and investors and is well known for its design-led philosophy and creative management approach to development. Its appealing designs attract a range of tenants, including those from creative industries. The group has been a Real Estate Investment Trust (REIT) principally property investors with tax-exempt property rental businesses, but remain subject to corporation tax on nonexempt income and gains The Group owns and manages an investment portfolio of approximately 5.4 million sq ft, of which 98% is located in central London, with a specific focus on the West End and the areas bordering the City of London.
71GF Score
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