The Swatch Group AGSWGAF 71 ROC (Joel Greenblatt) % is 1.74% as of Dec. 2025, which is 83% below its 10-year median of 10.45. GuruFocus rates SWGAF with a GF Score™ of 71/100 and a GF Value™ of $171.66 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,128 Retail - Cyclical companies, The Swatch Group AG ranks worse than 74.02% 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. The Swatch Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 1.74%.
The historical rank and industry rank for The Swatch Group AG's ROC (Joel Greenblatt) % or its related term are showing as below:
SWGAF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.41 Med: 10.45 Max: 12.18
Current: 1.55
During the past 13 years, The Swatch Group AG's highest ROC (Joel Greenblatt) % was 12.18%. The lowest was 0.41%. And the median was 10.45%.
SWGAF's ROC (Joel Greenblatt) % is ranked worse than 74.02% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 11.545
vs SWGAF: 1.55
The Swatch Group AG's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.60% per year.
The Swatch Group AG (OTCPK:SWGAF) ROC (Joel Greenblatt) % Explanation
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.
The Swatch Group AG ROC (Joel Greenblatt) % Related Terms
The Swatch Group AG ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The Swatch Group AG'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.
SWGAF vs TPR, SIG: ROC (Joel Greenblatt) % Comparison
For the Luxury Goods subindustry, The Swatch Group AG'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.
The Swatch Group AG ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Swatch Group AG's ROC (Joel Greenblatt) % falls into.
The Swatch Group AG ROC (Joel Greenblatt) % Calculation
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 1.74% mean?
The Swatch Group AG (SWGAF) has a ROC (Joel Greenblatt) % of 1.74% 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 The Swatch Group AG and its competitors. This is 83% below median its historical median of 10.45. Over the past decade, The Swatch Group AG's ROC (Joel Greenblatt) % has ranged from 0.41 to 12.18. According to the industry distribution chart, The Swatch Group AG ranks #835 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 74%.
Is The Swatch Group AG's ROC (Joel Greenblatt) % too high?
The Swatch Group AG's current ROC (Joel Greenblatt) % of 1.74% is 83% below median its 10-year median of 10.45. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 12.18. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.55. The Swatch Group AG's value of 1.74% is 84.9% below this industry median. Based on the distribution chart, The Swatch Group AG ranks #835 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Swatch Group AG has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Swatch Group AG's ROC (Joel Greenblatt) % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, The Swatch Group AG ranks #835 out of 1128 companies for ROC (Joel Greenblatt) %. This places The Swatch Group AG in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.55. The Swatch Group AG's value of 1.74% is 84.9% below this benchmark. Historically, The Swatch Group AG's own ROC (Joel Greenblatt) % has ranged from 0.41 to 12.18 over the past decade. While the company's 10-year median is 10.45 vs. the industry median of 11.55, The Swatch Group AG has consistently been below 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 Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.55, based on 1,128 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. The Swatch Group AG's current ROC (Joel Greenblatt) % of 1.74% is 84.9% below 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 The Swatch Group AG and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Swatch Group AG's current ROC (Joel Greenblatt) % is 1.74%, which is 83% below median its own 10-year median of 10.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Swatch Group AG stock overvalued right now?
Based on GuruFocus' analysis, The Swatch Group AG (SWGAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $171.66, compared to a current price of $257.43 — trading 50% above its estimated fair value. The current ROC (Joel Greenblatt) % is 1.74%, which is 83% below median its 10-year median of 10.45 and 84.9% below the Retail - Cyclical industry median of 11.55. The Swatch Group AG's overall GF Score™ is 71/100 with 10 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 The Swatch Group AG (SWGAF), the current ROC (Joel Greenblatt) % is 1.74% 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 The Swatch Group AG (SWGAF) Overvalued in 2026?
Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued.
The current stock price of $257.43 is trading 50% above its estimated GF Value™ of $171.66.
GuruFocus considers The Swatch Group AG to be Significantly Overvalued.
Key valuation signals for SWGAF:
ROC (Joel Greenblatt) %: 1.74% (83% below median its 10-year median of 10.45)
GF Value™: $171.66 vs. price of $257.43 (50% above fair value)
Industry Position: 84.9% below the Retail - Cyclical median (#835 of 1128)
No single metric tells the full story. See the SWGAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swatch Group's biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group's most profitable brands.
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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