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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. Teva Pharmaceutical Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was -24.20%.
The historical rank and industry rank for Teva Pharmaceutical Industries's ROC (Joel Greenblatt) % or its related term are showing as below:
LTS:0LER'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -206.93 Med: -5.71 Max: 45.64
Current: 34.37
During the past 13 years, Teva Pharmaceutical Industries's highest ROC (Joel Greenblatt) % was 45.64%. The lowest was -206.93%. And the median was -5.71%.
LTS:0LER's ROC (Joel Greenblatt) % is ranked better than 78.13% of 983
companies
in the Drug Manufacturers industry
Industry Median: 11.44
vs LTS:0LER: 34.37
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.
* 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.
LTS:0LER vs ZTS, UTHR, VTRS: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.
Teva Pharmaceutical Industries ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries'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 (Jun. 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 -24.20% mean?
Teva Pharmaceutical Industries (LTS:0LER) has a ROC (Joel Greenblatt) % of -24.20% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Teva Pharmaceutical Industries and its competitors. According to the industry distribution chart, Teva Pharmaceutical Industries ranks #215 out of 983 companies in the Drug Manufacturers industry, placing it in the top 21.9%.
Is Teva Pharmaceutical Industries' ROC (Joel Greenblatt) % too high?
Teva Pharmaceutical Industries' current ROC (Joel Greenblatt) % is -24.20%. Based on the distribution chart, Teva Pharmaceutical Industries ranks #215 out of 983 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Teva Pharmaceutical Industries has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' ROC (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Teva Pharmaceutical Industries ranks #215 out of 983 companies for ROC (Joel Greenblatt) %. This places Teva Pharmaceutical Industries in the top 22% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.44. 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 Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.44, based on 983 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 Teva Pharmaceutical Industries and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teva Pharmaceutical Industries's current ROC (Joel Greenblatt) % is -24.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teva Pharmaceutical Industries stock overvalued right now?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries (LTS:0LER) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.76, compared to a current price of $35.60 — trading 71.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is -24.20%. Teva Pharmaceutical Industries' overall GF Score™ is 45/100 with 6 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 Teva Pharmaceutical Industries (LTS:0LER), the current ROC (Joel Greenblatt) % is -24.20% as of Jun. 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 Teva Pharmaceutical Industries (LTS:0LER) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of $35.60 is trading 71.5% above its estimated GF Value™ of $20.76.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for LTS:0LER:
ROC (Joel Greenblatt) %: -24.20%
GF Value™: $20.76 vs. price of $35.60 (71.5% above fair value)
No single metric tells the full story. See the LTS:0LER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teva Pharmaceutical, based in Israel, is the world's leading generic drug manufacturer. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in two main therapeutic areas: neurology and immunology. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.
45GF Score
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