Purple InnovationPRPL -0.10%26 ROC (Joel Greenblatt) % is -53.97% as of Mar. 2026. GuruFocus rates PRPL with a GF Score™ of 26/100 and a GF Value™ of $0.86 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 435 Furnishings, Fixtures & Appliances companies, Purple Innovation ranks worse than 89.2% 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. Purple Innovation's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -53.97%.
The historical rank and industry rank for Purple Innovation's ROC (Joel Greenblatt) % or its related term are showing as below:
PRPL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -398.71 Med: -45.72 Max: 53.66
Current: -17.31
During the past 11 years, Purple Innovation's highest ROC (Joel Greenblatt) % was 53.66%. The lowest was -398.71%. And the median was -45.72%.
PRPL's ROC (Joel Greenblatt) % is ranked worse than 89.2% of 435
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 9.43
vs PRPL: -17.31
Purple Innovation'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.
Purple Innovation ROC (Joel Greenblatt) % Related Terms
Purple Innovation ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Purple Innovation'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.
PRPL vs CRWS, SNBR, NTZ: ROC (Joel Greenblatt) % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Purple Innovation'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.
Purple Innovation ROC (Joel Greenblatt) % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Purple Innovation's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Purple Innovation'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 -53.97% mean?
Purple Innovation (PRPL) has a ROC (Joel Greenblatt) % of -53.97% 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 Purple Innovation and its competitors. According to the industry distribution chart, Purple Innovation ranks #388 out of 435 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 89.2%.
Is Purple Innovation's ROC (Joel Greenblatt) % too high?
Purple Innovation's current ROC (Joel Greenblatt) % is -53.97%. Based on the distribution chart, Purple Innovation ranks #388 out of 435 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Purple Innovation has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Purple Innovation's ROC (Joel Greenblatt) % compare to CRWS and SNBR?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Purple Innovation ranks #388 out of 435 companies for ROC (Joel Greenblatt) %. This places Purple Innovation in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 9.43. 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 Furnishings, Fixtures & Appliances company?
The median ROC (Joel Greenblatt) % among Furnishings, Fixtures & Appliances companies is 9.43, based on 435 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. 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 Purple Innovation and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC (Joel Greenblatt) % is 9.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purple Innovation's current ROC (Joel Greenblatt) % is -53.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Innovation stock overvalued right now?
Based on GuruFocus' analysis, Purple Innovation (PRPL) is currently considered Possible Value Trap. The stock's GF Value™ is $0.86, compared to a current price of $0.39 — trading 54.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is -53.97%. Purple Innovation's overall GF Score™ is 26/100 with 7 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 Purple Innovation (PRPL), the current ROC (Joel Greenblatt) % is -53.97% 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 Purple Innovation (PRPL) Overvalued in 2026?
Based on GuruFocus' analysis, Purple Innovation stock appears to be undervalued.
The current stock price of $0.39 is trading 54.9% below its estimated GF Value™ of $0.86.
GuruFocus considers Purple Innovation to be Possible Value Trap.
Key valuation signals for PRPL:
ROC (Joel Greenblatt) %: -53.97%
GF Value™: $0.86 vs. price of $0.39 (54.9% below fair value)
No single metric tells the full story. See the PRPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Purple Innovation Inc designs and manufactures sleep products. Using its GelFlex Grid technology, the company designs, manufactures, and offers branded comfort sleep products, including mattresses, pillows, cushions, mattress protectors, bases, sheets, and others. It markets and sells these products through direct-to-consumer e-commerce channels, retail brick-and-mortar wholesale partners, Purple showrooms, and third-party online retailers.
26GF Score
Get the complete analysis for PRPL
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRPL has been successfully added to your 
