Perimeter SolutionsPRM -4.85%45 ROC (Joel Greenblatt) % is 122.85% as of Mar. 2026, which is 425% above its 10-year median of 23.39. GuruFocus rates PRM with a GF Score™ of 45/100 and a GF Value™ of $17.76 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,607 Chemicals companies, Perimeter Solutions ranks worse than 96.52% 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. Perimeter Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 122.85%.
The historical rank and industry rank for Perimeter Solutions's ROC (Joel Greenblatt) % or its related term are showing as below:
PRM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -103.98 Med: 23.39 Max: 94.62
Current: -92.03
During the past 7 years, Perimeter Solutions's highest ROC (Joel Greenblatt) % was 94.62%. The lowest was -103.98%. And the median was 23.39%.
PRM's ROC (Joel Greenblatt) % is ranked worse than 96.52% of 1607
companies
in the Chemicals industry
Industry Median: 9.38
vs PRM: -92.03
Perimeter Solutions'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.
Perimeter Solutions ROC (Joel Greenblatt) % Related Terms
Perimeter Solutions ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Perimeter 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.
PRM vs BCPC, SXT, CBT: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, Perimeter 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.
Perimeter Solutions ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Perimeter 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 122.85% mean?
Perimeter Solutions (PRM) has a ROC (Joel Greenblatt) % of 122.85% 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 Perimeter Solutions and its competitors. This is 425% above median its historical median of 23.39. According to the industry distribution chart, Perimeter Solutions ranks #1551 out of 1607 companies in the Chemicals industry, placing it in the top 96.5%.
Is Perimeter Solutions' ROC (Joel Greenblatt) % too high?
Perimeter Solutions' current ROC (Joel Greenblatt) % of 122.85% is 425% above median its 10-year median of 23.39. The Chemicals industry median ROC (Joel Greenblatt) % is 9.38. Perimeter Solutions' value of 122.85% is 1209.7% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #1551 out of 1607 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Perimeter Solutions has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Perimeter Solutions' ROC (Joel Greenblatt) % compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #1551 out of 1607 companies for ROC (Joel Greenblatt) %. This places Perimeter Solutions in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 9.38. Perimeter Solutions' value of 122.85% is 1209.7% above this benchmark. While the company's 10-year median is 23.39 vs. the industry median of 9.38, Perimeter Solutions 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 Chemicals company?
The median ROC (Joel Greenblatt) % among Chemicals companies is 9.38, based on 1,607 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. Perimeter Solutions's current ROC (Joel Greenblatt) % of 122.85% is 1209.7% 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 Perimeter Solutions and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current ROC (Joel Greenblatt) % is 122.85%, which is 425% above median its own 10-year median of 23.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perimeter Solutions stock overvalued right now?
Based on GuruFocus' analysis, Perimeter Solutions (PRM) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.76, compared to a current price of $32.73 — trading 84.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 122.85%, which is 425% above median its 10-year median of 23.39 and 1209.7% above the Chemicals industry median of 9.38. Perimeter Solutions' overall GF Score™ is 45/100 with 3 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 Perimeter Solutions (PRM), the current ROC (Joel Greenblatt) % is 122.85% 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 Perimeter Solutions (PRM) Overvalued in 2026?
Based on GuruFocus' analysis, Perimeter Solutions stock appears to be overvalued.
The current stock price of $32.73 is trading 84.3% above its estimated GF Value™ of $17.76.
GuruFocus considers Perimeter Solutions to be Significantly Overvalued.
Key valuation signals for PRM:
ROC (Joel Greenblatt) %: 122.85% (425% above median its 10-year median of 23.39)
GF Value™: $17.76 vs. price of $32.73 (84.3% above fair value)
Industry Position: 1209.7% above the Chemicals median (#1551 of 1607)
No single metric tells the full story. See the PRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perimeter Solutions Inc is a solutions provider for the Fire Safety and Specialty Products industries. The company's products and operations are managed and reported in two operating segments. Its Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the company's retardant and foam products. The Specialty Products segment develops, produces, and markets phosphorus pentasulfide (P2S5)-based products used in lubricant additives, as well as in pesticide, mining chemical, and battery applications.
45GF Score
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