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NVRMEX:NVR 84 ROC (Joel Greenblatt) % is 43.46% as of Mar. 2026, which is 43% below its 10-year median of 76.40. GuruFocus rates MEX:NVR with a GF Score™ of 84/100 and a GF Value™ of MXN155,335.89 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 96 Homebuilding & Construction companies, NVR ranks better than 94.79% 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. NVR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 43.46%.
The historical rank and industry rank for NVR's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:NVR'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 63.31 Med: 76.4 Max: 139.92
Current: 67.55
During the past 13 years, NVR's highest ROC (Joel Greenblatt) % was 139.92%. The lowest was 63.31%. And the median was 76.40%.
MEX:NVR's ROC (Joel Greenblatt) % is ranked better than 94.79% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 11.055
vs MEX:NVR: 67.55
NVR's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.60% per year.
NVR (MEX:NVR) 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.
The historical data trend for NVR'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:NVR vs TOL, LEN, PHM: ROC (Joel Greenblatt) % Comparison
For the Residential Construction subindustry, NVR'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.
NVR ROC (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where NVR'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 (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 43.46% mean?
NVR (MEX:NVR) has a ROC (Joel Greenblatt) % of 43.46% 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 NVR and its competitors. This is 43% below median its historical median of 76.40. Over the past decade, NVR's ROC (Joel Greenblatt) % has ranged from 63.31 to 139.92. According to the industry distribution chart, NVR ranks #5 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 5.2%.
Is NVR's ROC (Joel Greenblatt) % too high?
NVR's current ROC (Joel Greenblatt) % of 43.46% is 43% below median its 10-year median of 76.40. Over the past 10 years, this metric has ranged from a low of 63.31 to a high of 139.92. The Homebuilding & Construction industry median ROC (Joel Greenblatt) % is 11.06. NVR's value of 43.46% is 293.1% above this industry median. Based on the distribution chart, NVR ranks #5 out of 96 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, NVR has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NVR's ROC (Joel Greenblatt) % compare to TOL and LEN?
According to the Homebuilding & Construction industry distribution chart, NVR ranks #5 out of 96 companies for ROC (Joel Greenblatt) %. This places NVR in the top 5% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.06. NVR's value of 43.46% is 293.1% above this benchmark. Historically, NVR's own ROC (Joel Greenblatt) % has ranged from 63.31 to 139.92 over the past decade. While the company's 10-year median is 76.40 vs. the industry median of 11.06, NVR 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 Homebuilding & Construction company?
The median ROC (Joel Greenblatt) % among Homebuilding & Construction companies is 11.06, based on 96 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. NVR's current ROC (Joel Greenblatt) % of 43.46% is 293.1% 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 NVR and its competitors. For the Homebuilding & Construction industry, the median ROC (Joel Greenblatt) % is 11.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NVR's current ROC (Joel Greenblatt) % is 43.46%, which is 43% below median its own 10-year median of 76.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NVR stock overvalued right now?
Based on GuruFocus' analysis, NVR (MEX:NVR) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN155,335.89, compared to a current price of MXN119,814.39 — trading 22.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 43.46%, which is 43% below median its 10-year median of 76.40 and 293.1% above the Homebuilding & Construction industry median of 11.06. NVR's overall GF Score™ is 84/100 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 NVR (MEX:NVR), the current ROC (Joel Greenblatt) % is 43.46% 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 NVR (MEX:NVR) Overvalued in 2026?
Based on GuruFocus' analysis, NVR stock appears to be undervalued.
The current stock price of MXN119,814.39 is trading 22.9% below its estimated GF Value™ of MXN155,335.89.
GuruFocus considers NVR to be Modestly Undervalued.
Key valuation signals for MEX:NVR:
ROC (Joel Greenblatt) %: 43.46% (43% below median its 10-year median of 76.40)
GF Value™: MXN155,335.89 vs. price of MXN119,814.39 (22.9% below fair value)
Industry Position: 293.1% above the Homebuilding & Construction median (#5 of 96)
No single metric tells the full story. See the MEX:NVR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NVR Inc is engaged in the construction and sale of residential properties, including single-family detached homes, townhomes, and condominium buildings, all of which are built on a pre-sold basis. Additionally, the company provides related services through its mortgage banking and title services businesses. Its business segments are Homebuilding and Mortgage Banking. Its geographical segments include the Mid Atlantic, the North East, the Mid East, and the South East regions of America. The majority of the company's revenue is derived from the Homebuilding Mid Atlantic segment, which includes homebuilding operations that construct and sell single-family detached homes, townhomes and condominiums in Maryland, Virginia, West Virginia, Delaware and Washington, D.C. regions.
84GF Score
Get the complete analysis for MEX:NVR
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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