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YoudaoMEX:DAON 16 ROC (Joel Greenblatt) % is 422.38% as of Jun. 2026. GuruFocus rates MEX:DAON with a GF Score™ of 16/100 and a GF Value™ of MXN110.06 (Significantly Overvalued). Among 265 Education companies, Youdao ranks better than 92.45% 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. Youdao's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 422.38%.
The historical rank and industry rank for Youdao's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:DAON'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1274.06 Med: -521.23 Max: 256.57
Current: 256.57
During the past 9 years, Youdao's highest ROC (Joel Greenblatt) % was 256.57%. The lowest was -1274.06%. And the median was -521.23%.
MEX:DAON's ROC (Joel Greenblatt) % is ranked better than 92.45% of 265
companies
in the Education industry
Industry Median: 17.07
vs MEX:DAON: 256.57
Youdao's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% 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.
The historical data trend for Youdao'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.
MEX:DAON vs PRDO, STRA, COUR: ROC (Joel Greenblatt) % Comparison
For the Education & Training Services subindustry, Youdao'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.
Youdao ROC (Joel Greenblatt) % vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Youdao'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 422.38% mean?
Youdao (MEX:DAON) has a ROC (Joel Greenblatt) % of 422.38% 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 Youdao and its competitors. According to the industry distribution chart, Youdao ranks #20 out of 265 companies in the Education industry, placing it in the top 7.5%.
Is Youdao's ROC (Joel Greenblatt) % too high?
Youdao's current ROC (Joel Greenblatt) % is 422.38%. The Education industry median ROC (Joel Greenblatt) % is 17.07. Youdao's value of 422.38% is 2374.4% above this industry median. Based on the distribution chart, Youdao ranks #20 out of 265 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Youdao has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Youdao's ROC (Joel Greenblatt) % compare to PRDO and STRA?
According to the Education industry distribution chart, Youdao ranks #20 out of 265 companies for ROC (Joel Greenblatt) %. This places Youdao in the top 8% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 17.07. Youdao's value of 422.38% is 2374.4% above this benchmark. 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 an Education company?
The median ROC (Joel Greenblatt) % among Education companies is 17.07, based on 265 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. Youdao's current ROC (Joel Greenblatt) % of 422.38% is 2374.4% 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 Youdao and its competitors. For the Education industry, the median ROC (Joel Greenblatt) % is 17.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current ROC (Joel Greenblatt) % is 422.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Youdao stock overvalued right now?
Based on GuruFocus' analysis, Youdao (MEX:DAON) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN110.06, compared to a current price of MXN210.00 — trading 90.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 422.38% and 2374.4% above the Education industry median of 17.07. Youdao's overall GF Score™ is 16/100. 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 Youdao (MEX:DAON), the current ROC (Joel Greenblatt) % is 422.38% 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 Youdao (MEX:DAON) Overvalued in 2026?
Based on GuruFocus' analysis, Youdao stock appears to be overvalued.
The current stock price of MXN210.00 is trading 90.8% above its estimated GF Value™ of MXN110.06.
GuruFocus considers Youdao to be Significantly Overvalued.
Key valuation signals for MEX:DAON:
ROC (Joel Greenblatt) %: 422.38%
GF Value™: MXN110.06 vs. price of MXN210.00 (90.8% above fair value)
Industry Position: 2374.4% above the Education median (#20 of 265)
No single metric tells the full story. See the MEX:DAON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Smart devices, and Online marketing services. The majority of its revenue comes from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as the Youdao Dictionary Pen and the Youdao Pocket Translator. Geographically, all of its revenue is generated from the People's Republic of China.
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