Rolls-Royce HoldingsRYCEF +2.80%69 ROC (Joel Greenblatt) % is 95.23% as of Dec. 2025. GuruFocus rates RYCEF with a GF Score™ of 69/100 and a GF Value™ of $8.23 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 355 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 96.9% 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. Rolls-Royce Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 95.23%.
The historical rank and industry rank for Rolls-Royce Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
RYCEF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -119.91 Med: -6.42 Max: 157.62
Current: 157.62
During the past 13 years, Rolls-Royce Holdings's highest ROC (Joel Greenblatt) % was 157.62%. The lowest was -119.91%. And the median was -6.42%.
RYCEF's ROC (Joel Greenblatt) % is ranked better than 96.9% of 355
companies
in the Aerospace & Defense industry
Industry Median: 10.76
vs RYCEF: 157.62
Rolls-Royce Holdings'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.
Rolls-Royce Holdings ROC (Joel Greenblatt) % Related Terms
Rolls-Royce Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Rolls-Royce 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.
RYCEF vs SPCX, GE, RTX: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, Rolls-Royce 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.
Rolls-Royce Holdings ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce 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 two times the semi-annual (Dec. 2025) 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 95.23% mean?
Rolls-Royce Holdings (RYCEF) has a ROC (Joel Greenblatt) % of 95.23% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Rolls-Royce Holdings and its competitors. According to the industry distribution chart, Rolls-Royce Holdings ranks #11 out of 355 companies in the Aerospace & Defense industry, placing it in the top 3.1%.
Is Rolls-Royce Holdings' ROC (Joel Greenblatt) % too high?
Rolls-Royce Holdings' current ROC (Joel Greenblatt) % is 95.23%. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.76. Rolls-Royce Holdings' value of 95.23% is 785% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #11 out of 355 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Rolls-Royce Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' ROC (Joel Greenblatt) % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #11 out of 355 companies for ROC (Joel Greenblatt) %. This places Rolls-Royce Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.76. Rolls-Royce Holdings' value of 95.23% is 785% above 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 an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.76, based on 355 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. Rolls-Royce Holdings's current ROC (Joel Greenblatt) % of 95.23% is 785% 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 Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current ROC (Joel Greenblatt) % is 95.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (RYCEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.23, compared to a current price of $19.68 — trading 139.1% above its estimated fair value. The current ROC (Joel Greenblatt) % is 95.23% and 785% above the Aerospace & Defense industry median of 10.76. Rolls-Royce Holdings' overall GF Score™ is 69/100 with 5 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 Rolls-Royce Holdings (RYCEF), the current ROC (Joel Greenblatt) % is 95.23% as of Dec. 2025. 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 Rolls-Royce Holdings (RYCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $19.68 is trading 139.1% above its estimated GF Value™ of $8.23.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
ROC (Joel Greenblatt) %: 95.23%
GF Value™: $8.23 vs. price of $19.68 (139.1% above fair value)
Industry Position: 785% above the Aerospace & Defense median (#11 of 355)
No single metric tells the full story. See the RYCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
69GF Score
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