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. Alexandria Real Estate Equities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 168.88%.
The historical rank and industry rank for Alexandria Real Estate Equities's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:ARE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -84.15 Med: 76.95 Max: 332.67
Current: -54.15
During the past 13 years, Alexandria Real Estate Equities's highest ROC (Joel Greenblatt) % was 332.67%. The lowest was -84.15%. And the median was 76.95%.
MEX:ARE's ROC (Joel Greenblatt) % is ranked worse than 93.17% of 586
companies
in the REITs industry
Industry Median: 176.06
vs MEX:ARE: -54.15
Alexandria Real Estate Equities (MEX:ARE) 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.
* 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.
Alexandria Real Estate Equities ROC (Joel Greenblatt) % Chart
MEX:ARE vs BXP, VNO, CUZ: ROC (Joel Greenblatt) % Comparison
For the REIT - Office subindustry, Alexandria Real Estate Equities'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.
Alexandria Real Estate Equities ROC (Joel Greenblatt) % vs REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's ROC (Joel Greenblatt) % falls into.
Alexandria Real Estate Equities 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 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 168.88% mean?
Alexandria Real Estate Equities (MEX:ARE) has a ROC (Joel Greenblatt) % of 168.88% 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 Alexandria Real Estate Equities and its competitors. This is 119% above median its historical median of 76.95. According to the industry distribution chart, Alexandria Real Estate Equities ranks #546 out of 586 companies in the REITs industry, placing it in the top 93.2%.
Is Alexandria Real Estate Equities' ROC (Joel Greenblatt) % too high?
Alexandria Real Estate Equities' current ROC (Joel Greenblatt) % of 168.88% is 119% above median its 10-year median of 76.95. The REITs industry median ROC (Joel Greenblatt) % is 176.06. Alexandria Real Estate Equities' value of 168.88% is 4.1% below this industry median. Based on the distribution chart, Alexandria Real Estate Equities ranks #546 out of 586 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Alexandria Real Estate Equities has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alexandria Real Estate Equities' ROC (Joel Greenblatt) % compare to BXP and VNO?
According to the REITs industry distribution chart, Alexandria Real Estate Equities ranks #546 out of 586 companies for ROC (Joel Greenblatt) %. This places Alexandria Real Estate Equities in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 176.06. Alexandria Real Estate Equities' value of 168.88% is 4.1% below this benchmark. While the company's 10-year median is 76.95 vs. the industry median of 176.06, Alexandria Real Estate Equities has consistently been below 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 176.06, based on 586 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. Alexandria Real Estate Equities's current ROC (Joel Greenblatt) % of 168.88% is 4.1% 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 Alexandria Real Estate Equities and its competitors. For the REITs industry, the median ROC (Joel Greenblatt) % is 176.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alexandria Real Estate Equities's current ROC (Joel Greenblatt) % is 168.88%, which is 119% above median its own 10-year median of 76.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alexandria Real Estate Equities stock overvalued right now?
Based on GuruFocus' analysis, Alexandria Real Estate Equities (MEX:ARE) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,679.33, compared to a current price of MXN839.49 — trading 50% below its estimated fair value. The current ROC (Joel Greenblatt) % is 168.88%, which is 119% above median its 10-year median of 76.95 and 4.1% below the REITs industry median of 176.06. Alexandria Real Estate Equities' overall GF Score™ is 46/100 with 9 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 Alexandria Real Estate Equities (MEX:ARE), the current ROC (Joel Greenblatt) % is 168.88% 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 Alexandria Real Estate Equities (MEX:ARE) Overvalued in 2026?
Based on GuruFocus' analysis, Alexandria Real Estate Equities stock appears to be undervalued.
The current stock price of MXN839.49 is trading 50% below its estimated GF Value™ of MXN1,679.33.
GuruFocus considers Alexandria Real Estate Equities to be Possible Value Trap.
Key valuation signals for MEX:ARE:
ROC (Joel Greenblatt) %: 168.88% (119% above median its 10-year median of 76.95)
GF Value™: MXN1,679.33 vs. price of MXN839.49 (50% below fair value)
Industry Position: 4.1% below the REITs median (#546 of 586)
No single metric tells the full story. See the MEX:ARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alexandria Real Estate Equities Business Description
Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle, Texas, and Canada. The Company is a life science real estate investment trust focused on developing, redeveloping, and operating properties that provide space for lease to tenants in the life science industry.
46GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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