Toll BrothersTOL +0.83%94 ROC (Joel Greenblatt) % is 14.83% as of Apr. 2026, which is 2% below its 10-year median of 15.14. GuruFocus rates TOL with a GF Score™ of 94/100 and a GF Value™ of $136.79 (Fairly Valued). The stock has 4 warning signs investors should review. Among 95 Homebuilding & Construction companies, Toll Brothers ranks better than 67.37% 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. Toll Brothers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 14.83%.
The historical rank and industry rank for Toll Brothers's ROC (Joel Greenblatt) % or its related term are showing as below:
TOL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.81 Med: 15.14 Max: 26.47
Current: 18.09
During the past 13 years, Toll Brothers's highest ROC (Joel Greenblatt) % was 26.47%. The lowest was 7.81%. And the median was 15.14%.
TOL's ROC (Joel Greenblatt) % is ranked better than 67.37% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 11.3
vs TOL: 18.09
Toll Brothers's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 18.30% 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.
Toll Brothers ROC (Joel Greenblatt) % Related Terms
Toll Brothers ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Toll Brothers'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.
TOL vs NVR, LEN, TMHC: ROC (Joel Greenblatt) % Comparison
For the Residential Construction subindustry, Toll Brothers'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.
Toll Brothers ROC (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Toll Brothers'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 14.83% mean?
Toll Brothers (TOL) has a ROC (Joel Greenblatt) % of 14.83% 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 Toll Brothers and its competitors. This is near median its historical median of 15.14. Over the past decade, Toll Brothers' ROC (Joel Greenblatt) % has ranged from 7.81 to 26.47. According to the industry distribution chart, Toll Brothers ranks #31 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 32.6%.
Is Toll Brothers' ROC (Joel Greenblatt) % too high?
Toll Brothers' current ROC (Joel Greenblatt) % of 14.83% is near median its 10-year median of 15.14. Over the past 10 years, this metric has ranged from a low of 7.81 to a high of 26.47. The Homebuilding & Construction industry median ROC (Joel Greenblatt) % is 11.30. Toll Brothers' value of 14.83% is 31.2% above this industry median. Based on the distribution chart, Toll Brothers ranks #31 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Toll Brothers has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' ROC (Joel Greenblatt) % compare to NVR and LEN?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #31 out of 95 companies for ROC (Joel Greenblatt) %. This puts Toll Brothers in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.30. Toll Brothers' value of 14.83% is 31.2% above this benchmark. Historically, Toll Brothers' own ROC (Joel Greenblatt) % has ranged from 7.81 to 26.47 over the past decade. While the company's 10-year median is 15.14 vs. the industry median of 11.30, Toll Brothers 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 Homebuilding & Construction company?
The median ROC (Joel Greenblatt) % among Homebuilding & Construction companies is 11.30, based on 95 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. Toll Brothers's current ROC (Joel Greenblatt) % of 14.83% is 31.2% 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 Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median ROC (Joel Greenblatt) % is 11.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current ROC (Joel Greenblatt) % is 14.83%, which is near median its own 10-year median of 15.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (TOL) is currently considered Fairly Valued. The stock's GF Value™ is $136.79, compared to a current price of $149.49 — trading 9.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 14.83%, which is near median its 10-year median of 15.14 and 31.2% above the Homebuilding & Construction industry median of 11.30. Toll Brothers' overall GF Score™ is 94/100 with 4 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 Toll Brothers (TOL), the current ROC (Joel Greenblatt) % is 14.83% 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 Toll Brothers (TOL) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of $149.49 is trading 9.3% above its estimated GF Value™ of $136.79.
GuruFocus considers Toll Brothers to be Fairly Valued.
Key valuation signals for TOL:
ROC (Joel Greenblatt) %: 14.83% (near median its 10-year median of 15.14)
GF Value™: $136.79 vs. price of $149.49 (9.3% above fair value)
Industry Position: 31.2% above the Homebuilding & Construction median (#31 of 95)
No single metric tells the full story. See the TOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
94GF Score
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