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Digital ArtsTSE:2326 -0.12%87 ROC (Joel Greenblatt) % is 2,341.82% as of Mar. 2026, which is 41% above its 10-year median of 1,662.10. GuruFocus rates TSE:2326 with a GF Score™ of 87/100 and a GF Value™ of 円6,165.49 (Significantly Undervalued). Among 2,815 Software companies, Digital Arts ranks better than 98.33% 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. Digital Arts's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2,341.82%.
The historical rank and industry rank for Digital Arts's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:2326'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 912.79 Med: 1662.1 Max: 2126.75
Current: 2010.07
During the past 13 years, Digital Arts's highest ROC (Joel Greenblatt) % was 2126.75%. The lowest was 912.79%. And the median was 1662.10%.
TSE:2326's ROC (Joel Greenblatt) % is ranked better than 98.33% of 2815
companies
in the Software industry
Industry Median: 19.63
vs TSE:2326: 2010.07
Digital Arts's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.10% per year.
Digital Arts (TSE:2326) 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.
Digital Arts ROC (Joel Greenblatt) % Related Terms
Digital Arts ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Digital Arts'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.
TSE:2326 vs MSFT, ORCL, PLTR: ROC (Joel Greenblatt) % Comparison
For the Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Digital Arts's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Digital Arts'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 (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 2,341.82% mean?
Digital Arts (TSE:2326) has a ROC (Joel Greenblatt) % of 2,341.82% 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 Digital Arts and its competitors. This is 41% above median its historical median of 1,662.10. Over the past decade, Digital Arts' ROC (Joel Greenblatt) % has ranged from 912.79 to 2,126.75. According to the industry distribution chart, Digital Arts ranks #47 out of 2815 companies in the Software industry, placing it in the top 1.7%.
Is Digital Arts' ROC (Joel Greenblatt) % too high?
Digital Arts' current ROC (Joel Greenblatt) % of 2,341.82% is 41% above median its 10-year median of 1,662.10. Over the past 10 years, this metric has ranged from a low of 912.79 to a high of 2,126.75. The Software industry median ROC (Joel Greenblatt) % is 19.63. Digital Arts' value of 2,341.82% is 11829.8% above this industry median. Based on the distribution chart, Digital Arts ranks #47 out of 2815 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Arts has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' ROC (Joel Greenblatt) % compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #47 out of 2815 companies for ROC (Joel Greenblatt) %. This places Digital Arts in the top 2% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.63. Digital Arts' value of 2,341.82% is 11829.8% above this benchmark. Historically, Digital Arts' own ROC (Joel Greenblatt) % has ranged from 912.79 to 2,126.75 over the past decade. While the company's 10-year median is 1,662.10 vs. the industry median of 19.63, Digital Arts 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.63, based on 2,815 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. Digital Arts's current ROC (Joel Greenblatt) % of 2,341.82% is 11829.8% 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 Digital Arts and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Arts's current ROC (Joel Greenblatt) % is 2,341.82%, which is 41% above median its own 10-year median of 1,662.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,165.49, compared to a current price of 円4,320.00 — trading 29.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 2,341.82%, which is 41% above median its 10-year median of 1,662.10 and 11829.8% above the Software industry median of 19.63. Digital Arts' overall GF Score™ is 87/100. 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 Digital Arts (TSE:2326), the current ROC (Joel Greenblatt) % is 2,341.82% 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円4,320.00 is trading 29.9% below its estimated GF Value™ of 円6,165.49.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
ROC (Joel Greenblatt) %: 2,341.82% (41% above median its 10-year median of 1,662.10)
GF Value™: 円6,165.49 vs. price of 円4,320.00 (29.9% below fair value)
Industry Position: 11829.8% above the Software median (#47 of 2815)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
87GF Score
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