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Leidos HoldingsMIL:1LDOS 56 ROC (Joel Greenblatt) % is 93.98% as of Mar. 2026, which is 28% below its 10-year median of 129.67. GuruFocus rates MIL:1LDOS with a GF Score™ of 56/100 and a GF Value™ of €147.21 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,810 Software companies, Leidos Holdings ranks better than 71.07% 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. Leidos Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 93.98%.
The historical rank and industry rank for Leidos Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
MIL:1LDOS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 42.93 Med: 129.67 Max: 321.96
Current: 90.47
During the past 13 years, Leidos Holdings's highest ROC (Joel Greenblatt) % was 321.96%. The lowest was 42.93%. And the median was 129.67%.
MIL:1LDOS's ROC (Joel Greenblatt) % is ranked better than 71.07% of 2810
companies
in the Software industry
Industry Median: 19.94
vs MIL:1LDOS: 90.47
Leidos Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 4.70% 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.
Leidos Holdings ROC (Joel Greenblatt) % Related Terms
Leidos Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Leidos Holdings'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.
MIL:1LDOS vs WSE, APLD, CIFR: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Leidos Holdings'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.
Leidos Holdings ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Leidos Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Leidos Holdings'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 93.98% mean?
Leidos Holdings (MIL:1LDOS) has a ROC (Joel Greenblatt) % of 93.98% 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 Leidos Holdings and its competitors. This is 28% below median its historical median of 129.67. Over the past decade, Leidos Holdings' ROC (Joel Greenblatt) % has ranged from 42.93 to 321.96. According to the industry distribution chart, Leidos Holdings ranks #813 out of 2810 companies in the Software industry, placing it in the top 28.9%.
Is Leidos Holdings' ROC (Joel Greenblatt) % too high?
Leidos Holdings' current ROC (Joel Greenblatt) % of 93.98% is 28% below median its 10-year median of 129.67. Over the past 10 years, this metric has ranged from a low of 42.93 to a high of 321.96. The Software industry median ROC (Joel Greenblatt) % is 19.94. Leidos Holdings' value of 93.98% is 371.3% above this industry median. Based on the distribution chart, Leidos Holdings ranks #813 out of 2810 companies in the Software industry, which is above the industry midpoint. Overall, Leidos Holdings has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leidos Holdings' ROC (Joel Greenblatt) % compare to WSE and APLD?
According to the Software industry distribution chart, Leidos Holdings ranks #813 out of 2810 companies for ROC (Joel Greenblatt) %. This puts Leidos Holdings in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 19.94. Leidos Holdings' value of 93.98% is 371.3% above this benchmark. Historically, Leidos Holdings' own ROC (Joel Greenblatt) % has ranged from 42.93 to 321.96 over the past decade. While the company's 10-year median is 129.67 vs. the industry median of 19.94, Leidos Holdings 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.94, based on 2,810 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. Leidos Holdings's current ROC (Joel Greenblatt) % of 93.98% is 371.3% 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 Leidos Holdings and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leidos Holdings's current ROC (Joel Greenblatt) % is 93.98%, which is 28% below median its own 10-year median of 129.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leidos Holdings stock overvalued right now?
Based on GuruFocus' analysis, Leidos Holdings (MIL:1LDOS) is currently considered Significantly Undervalued. The stock's GF Value™ is €147.21, compared to a current price of €95.00 — trading 35.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 93.98%, which is 28% below median its 10-year median of 129.67 and 371.3% above the Software industry median of 19.94. Leidos Holdings' overall GF Score™ is 56/100 with 2 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 Leidos Holdings (MIL:1LDOS), the current ROC (Joel Greenblatt) % is 93.98% 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 Leidos Holdings (MIL:1LDOS) Overvalued in 2026?
Based on GuruFocus' analysis, Leidos Holdings stock appears to be undervalued.
The current stock price of €95.00 is trading 35.5% below its estimated GF Value™ of €147.21.
GuruFocus considers Leidos Holdings to be Significantly Undervalued.
Key valuation signals for MIL:1LDOS:
ROC (Joel Greenblatt) %: 93.98% (28% below median its 10-year median of 129.67)
GF Value™: €147.21 vs. price of €95.00 (35.5% below fair value)
Industry Position: 371.3% above the Software median (#813 of 2810)
No single metric tells the full story. See the MIL:1LDOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health management, both domestically and internationally. The customers of the company includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.
56GF Score
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