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Nihon FalcomTSE:3723 -0.66%69 ROC (Joel Greenblatt) % is 506.39% as of Mar. 2026, which is 37% above its 10-year median of 369.02. GuruFocus rates TSE:3723 with a GF Score™ of 69/100 and a GF Value™ of 円1,730.49 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 549 Interactive Media companies, Nihon Falcom ranks better than 95.45% 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. Nihon Falcom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 506.39%.
The historical rank and industry rank for Nihon Falcom's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:3723'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 222.14 Med: 369.02 Max: 1132.34
Current: 1102.04
During the past 13 years, Nihon Falcom's highest ROC (Joel Greenblatt) % was 1132.34%. The lowest was 222.14%. And the median was 369.02%.
TSE:3723's ROC (Joel Greenblatt) % is ranked better than 95.45% of 549
companies
in the Interactive Media industry
Industry Median: 16.14
vs TSE:3723: 1102.04
Nihon Falcom's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -27.20% 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.
Nihon Falcom ROC (Joel Greenblatt) % Related Terms
Nihon Falcom ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Nihon Falcom'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:3723 vs NTES, EA, TTWO: ROC (Joel Greenblatt) % Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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 506.39% mean?
Nihon Falcom (TSE:3723) has a ROC (Joel Greenblatt) % of 506.39% 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 Nihon Falcom and its competitors. This is 37% above median its historical median of 369.02. Over the past decade, Nihon Falcom's ROC (Joel Greenblatt) % has ranged from 222.14 to 1,132.34. According to the industry distribution chart, Nihon Falcom ranks #25 out of 549 companies in the Interactive Media industry, placing it in the top 4.6%.
Is Nihon Falcom's ROC (Joel Greenblatt) % too high?
Nihon Falcom's current ROC (Joel Greenblatt) % of 506.39% is 37% above median its 10-year median of 369.02. Over the past 10 years, this metric has ranged from a low of 222.14 to a high of 1,132.34. The Interactive Media industry median ROC (Joel Greenblatt) % is 16.14. Nihon Falcom's value of 506.39% is 3037.5% above this industry median. Based on the distribution chart, Nihon Falcom ranks #25 out of 549 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Falcom has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's ROC (Joel Greenblatt) % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #25 out of 549 companies for ROC (Joel Greenblatt) %. This places Nihon Falcom in the top 5% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 16.14. Nihon Falcom's value of 506.39% is 3037.5% above this benchmark. Historically, Nihon Falcom's own ROC (Joel Greenblatt) % has ranged from 222.14 to 1,132.34 over the past decade. While the company's 10-year median is 369.02 vs. the industry median of 16.14, Nihon Falcom 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 an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 16.14, based on 549 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. Nihon Falcom's current ROC (Joel Greenblatt) % of 506.39% is 3037.5% 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 16.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current ROC (Joel Greenblatt) % is 506.39%, which is 37% above median its own 10-year median of 369.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.49, compared to a current price of 円2,695.00 — trading 55.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 506.39%, which is 37% above median its 10-year median of 369.02 and 3037.5% above the Interactive Media industry median of 16.14. Nihon Falcom's overall GF Score™ is 69/100 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 Nihon Falcom (TSE:3723), the current ROC (Joel Greenblatt) % is 506.39% 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,695.00 is trading 55.7% above its estimated GF Value™ of 円1,730.49.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
ROC (Joel Greenblatt) %: 506.39% (37% above median its 10-year median of 369.02)
GF Value™: 円1,730.49 vs. price of 円2,695.00 (55.7% above fair value)
Industry Position: 3037.5% above the Interactive Media median (#25 of 549)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
69GF Score
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