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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. Guidewire Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 89.91%.
The historical rank and industry rank for Guidewire Software's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:0GS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -120.66 Med: -8.28 Max: 208.84
Current: 171.1
During the past 13 years, Guidewire Software's highest ROC (Joel Greenblatt) % was 208.84%. The lowest was -120.66%. And the median was -8.28%.
STU:0GS's ROC (Joel Greenblatt) % is ranked better than 81.61% of 2816
companies
in the Software industry
Industry Median: 20.03
vs STU:0GS: 171.10
Guidewire Software'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.
Guidewire Software ROC (Joel Greenblatt) % Related Terms
Guidewire Software ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Guidewire Software'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.
STU:0GS vs FIG, FROG, HUBS: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, Guidewire Software'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.
Guidewire Software ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Guidewire Software's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Guidewire Software'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 (Apr. 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 89.91% mean?
Guidewire Software (STU:0GS) has a ROC (Joel Greenblatt) % of 89.91% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Guidewire Software and its competitors. According to the industry distribution chart, Guidewire Software ranks #518 out of 2816 companies in the Software industry, placing it in the top 18.4%.
Is Guidewire Software's ROC (Joel Greenblatt) % too high?
Guidewire Software's current ROC (Joel Greenblatt) % is 89.91%. The Software industry median ROC (Joel Greenblatt) % is 20.03. Guidewire Software's value of 89.91% is 348.9% above this industry median. Based on the distribution chart, Guidewire Software ranks #518 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Guidewire Software has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's ROC (Joel Greenblatt) % compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #518 out of 2816 companies for ROC (Joel Greenblatt) %. This places Guidewire Software in the top 18% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.03. Guidewire Software's value of 89.91% is 348.9% 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 a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 20.03, based on 2,816 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. Guidewire Software's current ROC (Joel Greenblatt) % of 89.91% is 348.9% 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 Guidewire Software and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current ROC (Joel Greenblatt) % is 89.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guidewire Software stock overvalued right now?
Based on GuruFocus' analysis, Guidewire Software (STU:0GS) is currently considered Significantly Undervalued. The stock's GF Value™ is €180.68, compared to a current price of €125.45 — trading 30.6% below its estimated fair value. The current ROC (Joel Greenblatt) % is 89.91% and 348.9% above the Software industry median of 20.03. Guidewire Software's overall GF Score™ is 71/100 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 Guidewire Software (STU:0GS), the current ROC (Joel Greenblatt) % is 89.91% as of Apr. 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 Guidewire Software (STU:0GS) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of €125.45 is trading 30.6% below its estimated GF Value™ of €180.68.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for STU:0GS:
ROC (Joel Greenblatt) %: 89.91%
GF Value™: €180.68 vs. price of €125.45 (30.6% below fair value)
Industry Position: 348.9% above the Software median (#518 of 2816)
No single metric tells the full story. See the STU:0GS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a midmarket offering, as well as a variety of other add-on applications and services.
71GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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