PDF SolutionsPDFS -8.23%77 ROC (Joel Greenblatt) % is 19.01% as of Mar. 2026. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.61 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,809 Software companies, PDF Solutions ranks worse than 52.87% 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. PDF Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 19.01%.
The historical rank and industry rank for PDF Solutions's ROC (Joel Greenblatt) % or its related term are showing as below:
PDFS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -31.43 Med: -2.09 Max: 29.38
Current: 14.65
During the past 13 years, PDF Solutions's highest ROC (Joel Greenblatt) % was 29.38%. The lowest was -31.43%. And the median was -2.09%.
PDFS's ROC (Joel Greenblatt) % is ranked worse than 52.87% of 2809
companies
in the Software industry
Industry Median: 19.89
vs PDFS: 14.65
PDF Solutions's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
PDF Solutions (NAS:PDFS) 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.
PDF Solutions ROC (Joel Greenblatt) % Related Terms
PDF Solutions ROC (Joel Greenblatt) % Historical Data
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The historical data trend for PDF Solutions'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.
PDFS vs SPSC, EVCM, ALKT: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, PDF Solutions'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.
PDF Solutions ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, PDF Solutions's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where PDF Solutions'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 19.01% mean?
PDF Solutions (PDFS) has a ROC (Joel Greenblatt) % of 19.01% 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 PDF Solutions and its competitors. According to the industry distribution chart, PDF Solutions ranks #1485 out of 2809 companies in the Software industry, placing it in the top 52.9%.
Is PDF Solutions' ROC (Joel Greenblatt) % too high?
PDF Solutions' current ROC (Joel Greenblatt) % is 19.01%. The Software industry median ROC (Joel Greenblatt) % is 19.89. PDF Solutions' value of 19.01% is 4.4% below this industry median. Based on the distribution chart, PDF Solutions ranks #1485 out of 2809 companies in the Software industry, which is below the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' ROC (Joel Greenblatt) % compare to SPSC and EVCM?
According to the Software industry distribution chart, PDF Solutions ranks #1485 out of 2809 companies for ROC (Joel Greenblatt) %. This places PDF Solutions in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.89. PDF Solutions' value of 19.01% is 4.4% below 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 a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.89, based on 2,809 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. PDF Solutions's current ROC (Joel Greenblatt) % of 19.01% is 4.4% 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 PDF Solutions and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDF Solutions's current ROC (Joel Greenblatt) % is 19.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.61, compared to a current price of $63.01 — trading 51.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 19.01% and 4.4% below the Software industry median of 19.89. PDF Solutions' overall GF Score™ is 77/100 with 6 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 PDF Solutions (PDFS), the current ROC (Joel Greenblatt) % is 19.01% 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $63.01 is trading 51.4% above its estimated GF Value™ of $41.61.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
ROC (Joel Greenblatt) %: 19.01%
GF Value™: $41.61 vs. price of $63.01 (51.4% above fair value)
Industry Position: 4.4% below the Software median (#1485 of 2809)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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