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Imperial BrandsSTU:ITBA -0.62%76 ROC (Joel Greenblatt) % is 109.86% as of Mar. 2026, which is 30% below its 10-year median of 156.75. GuruFocus rates STU:ITBA with a GF Score™ of 76/100 and a GF Value™ of €19.07 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 47 Tobacco Products companies, Imperial Brands ranks better than 80.85% 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. Imperial Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 109.86%.
The historical rank and industry rank for Imperial Brands's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:ITBA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 85.86 Med: 156.75 Max: 222.06
Current: 162.29
During the past 13 years, Imperial Brands's highest ROC (Joel Greenblatt) % was 222.06%. The lowest was 85.86%. And the median was 156.75%.
STU:ITBA's ROC (Joel Greenblatt) % is ranked better than 80.85% of 47
companies
in the Tobacco Products industry
Industry Median: 42.96
vs STU:ITBA: 162.29
Imperial Brands's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 4.90% 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.
Imperial Brands ROC (Joel Greenblatt) % Related Terms
Imperial Brands ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Imperial Brands'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:ITBA vs PM, MO, TPB: ROC (Joel Greenblatt) % Comparison
For the Tobacco subindustry, Imperial Brands'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.
Imperial Brands ROC (Joel Greenblatt) % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Imperial Brands'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 (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 109.86% mean?
Imperial Brands (STU:ITBA) has a ROC (Joel Greenblatt) % of 109.86% 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 Imperial Brands and its competitors. This is 30% below median its historical median of 156.75. Over the past decade, Imperial Brands' ROC (Joel Greenblatt) % has ranged from 85.86 to 222.06. According to the industry distribution chart, Imperial Brands ranks #9 out of 47 companies in the Tobacco Products industry, placing it in the top 19.1%.
Is Imperial Brands' ROC (Joel Greenblatt) % too high?
Imperial Brands' current ROC (Joel Greenblatt) % of 109.86% is 30% below median its 10-year median of 156.75. Over the past 10 years, this metric has ranged from a low of 85.86 to a high of 222.06. The Tobacco Products industry median ROC (Joel Greenblatt) % is 42.96. Imperial Brands' value of 109.86% is 155.7% above this industry median. Based on the distribution chart, Imperial Brands ranks #9 out of 47 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Imperial Brands has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Imperial Brands' ROC (Joel Greenblatt) % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Imperial Brands ranks #9 out of 47 companies for ROC (Joel Greenblatt) %. This places Imperial Brands in the top 19% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 42.96. Imperial Brands' value of 109.86% is 155.7% above this benchmark. Historically, Imperial Brands' own ROC (Joel Greenblatt) % has ranged from 85.86 to 222.06 over the past decade. While the company's 10-year median is 156.75 vs. the industry median of 42.96, Imperial Brands 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 Tobacco Products company?
The median ROC (Joel Greenblatt) % among Tobacco Products companies is 42.96, based on 47 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. Imperial Brands's current ROC (Joel Greenblatt) % of 109.86% is 155.7% 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 Imperial Brands and its competitors. For the Tobacco Products industry, the median ROC (Joel Greenblatt) % is 42.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Brands's current ROC (Joel Greenblatt) % is 109.86%, which is 30% below median its own 10-year median of 156.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Imperial Brands stock overvalued right now?
Based on GuruFocus' analysis, Imperial Brands (STU:ITBA) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.07, compared to a current price of €31.80 — trading 66.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 109.86%, which is 30% below median its 10-year median of 156.75 and 155.7% above the Tobacco Products industry median of 42.96. Imperial Brands' overall GF Score™ is 76/100 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 Imperial Brands (STU:ITBA), the current ROC (Joel Greenblatt) % is 109.86% 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 Imperial Brands (STU:ITBA) Overvalued in 2026?
Based on GuruFocus' analysis, Imperial Brands stock appears to be overvalued.
The current stock price of €31.80 is trading 66.8% above its estimated GF Value™ of €19.07.
GuruFocus considers Imperial Brands to be Significantly Overvalued.
Key valuation signals for STU:ITBA:
ROC (Joel Greenblatt) %: 109.86% (30% below median its 10-year median of 156.75)
GF Value™: €19.07 vs. price of €31.80 (66.8% above fair value)
Industry Position: 155.7% above the Tobacco Products median (#9 of 47)
No single metric tells the full story. See the STU:ITBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco), with total fiscal 2025 volume of 187 billion cigarettes sold in more than 120 countries. Its largest and most important markets are the US (where it sits as the third-largest manufacturer, following its acquisition of the Winston and Blu brands), Germany, the UK, Spain, and Australia. The firm also holds a leading global position in the fine-cut tobacco and hand-rolling paper categories. It has a logistics platform in Western Europe, Altadis.
76GF Score
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