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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. Magic Empire Global's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -67.40%.
The historical rank and industry rank for Magic Empire Global's ROC (Joel Greenblatt) % or its related term are showing as below:
MEGL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -170.38 Med: -39.94 Max: 152.43
Current: -153.49
During the past 6 years, Magic Empire Global's highest ROC (Joel Greenblatt) % was 152.43%. The lowest was -170.38%. And the median was -39.94%.
MEGL's ROC (Joel Greenblatt) % is ranked worse than 87.89% of 677
companies
in the Capital Markets industry
Industry Median: 35.1
vs MEGL: -153.49
Magic Empire Global's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Magic Empire Global (NAS:MEGL) 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.
Magic Empire Global ROC (Joel Greenblatt) % Related Terms
Magic Empire Global ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Magic Empire Global'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.
MEGL vs ITEX, WAI, NCPL: ROC (Joel Greenblatt) % Comparison
For the Capital Markets subindustry, Magic Empire Global'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.
Magic Empire Global ROC (Joel Greenblatt) % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Magic Empire Global's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Magic Empire Global's ROC (Joel Greenblatt) % falls into.
Magic Empire Global 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 -67.40% mean?
Magic Empire Global (MEGL) has a ROC (Joel Greenblatt) % of -67.40% 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 Magic Empire Global and its competitors. According to the industry distribution chart, Magic Empire Global ranks #595 out of 677 companies in the Capital Markets industry, placing it in the top 87.9%.
Is Magic Empire Global's ROC (Joel Greenblatt) % too high?
Magic Empire Global's current ROC (Joel Greenblatt) % is -67.40%. Based on the distribution chart, Magic Empire Global ranks #595 out of 677 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, Magic Empire Global has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magic Empire Global's ROC (Joel Greenblatt) % compare to ITEX and WAI?
According to the Capital Markets industry distribution chart, Magic Empire Global ranks #595 out of 677 companies for ROC (Joel Greenblatt) %. This places Magic Empire Global in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 35.10. 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 35.10, based on 677 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 Magic Empire Global and its competitors. For the Capital Markets industry, the median ROC (Joel Greenblatt) % is 35.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Empire Global's current ROC (Joel Greenblatt) % is -67.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Empire Global stock overvalued right now?
Based on GuruFocus' analysis, Magic Empire Global (MEGL) is currently considered Possible Value Trap. The stock's GF Value™ is $1.77, compared to a current price of $1.17 — trading 34.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is -67.40%. Magic Empire Global's overall GF Score™ is 58/100 with 1 warning sign 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 Magic Empire Global (MEGL), the current ROC (Joel Greenblatt) % is -67.40% 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 Magic Empire Global (MEGL) Overvalued in 2026?
Based on GuruFocus' analysis, Magic Empire Global stock appears to be undervalued.
The current stock price of $1.17 is trading 34.2% below its estimated GF Value™ of $1.77.
GuruFocus considers Magic Empire Global to be Possible Value Trap.
Key valuation signals for MEGL:
ROC (Joel Greenblatt) %: -67.40%
GF Value™: $1.77 vs. price of $1.17 (34.2% below fair value)
No single metric tells the full story. See the MEGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magic Empire Global Ltd is a financial services provider in Hong Kong which principally engage in the provision of corporate finance advisory services and underwriting services. The company's offerings mainly comprise of IPO sponsorship services, Financial advisory and independent financial advisory services, Compliance advisory services, Underwriting services, Corporate service.
58GF Score
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