VeraltoVLTO -1.58%61 ROC (Joel Greenblatt) % is 302.30% as of Mar. 2026, which is 4% above its 10-year median of 289.83. GuruFocus rates VLTO with a GF Score™ of 61/100 and a GF Value™ of $106.81 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,060 Industrial Products companies, Veralto ranks better than 99.18% 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. Veralto's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 302.30%.
The historical rank and industry rank for Veralto's ROC (Joel Greenblatt) % or its related term are showing as below:
VLTO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 273.46 Med: 289.83 Max: 348.04
Current: 308.02
During the past 6 years, Veralto's highest ROC (Joel Greenblatt) % was 348.04%. The lowest was 273.46%. And the median was 289.83%.
VLTO's ROC (Joel Greenblatt) % is ranked better than 99.18% of 3060
companies
in the Industrial Products industry
Industry Median: 11.775
vs VLTO: 308.02
Veralto's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% 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.
The historical data trend for Veralto'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.
VLTO vs ZWS, CECO, PCT: ROC (Joel Greenblatt) % Comparison
For the Pollution & Treatment Controls subindustry, Veralto'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.
Veralto ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Veralto's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Veralto'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 302.30% mean?
Veralto (VLTO) has a ROC (Joel Greenblatt) % of 302.30% 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 Veralto and its competitors. This is near median its historical median of 289.83. Over the past decade, Veralto's ROC (Joel Greenblatt) % has ranged from 273.46 to 348.04. According to the industry distribution chart, Veralto ranks #25 out of 3060 companies in the Industrial Products industry, placing it in the top 0.8%.
Is Veralto's ROC (Joel Greenblatt) % too high?
Veralto's current ROC (Joel Greenblatt) % of 302.30% is near median its 10-year median of 289.83. Over the past 10 years, this metric has ranged from a low of 273.46 to a high of 348.04. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.78. Veralto's value of 302.30% is 2467.3% above this industry median. Based on the distribution chart, Veralto ranks #25 out of 3060 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Veralto has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Veralto's ROC (Joel Greenblatt) % compare to ZWS and CECO?
According to the Industrial Products industry distribution chart, Veralto ranks #25 out of 3060 companies for ROC (Joel Greenblatt) %. This places Veralto in the top 1% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.78. Veralto's value of 302.30% is 2467.3% above this benchmark. Historically, Veralto's own ROC (Joel Greenblatt) % has ranged from 273.46 to 348.04 over the past decade. While the company's 10-year median is 289.83 vs. the industry median of 11.78, Veralto 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 Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.78, based on 3,060 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. Veralto's current ROC (Joel Greenblatt) % of 302.30% is 2467.3% 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 Veralto and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veralto's current ROC (Joel Greenblatt) % is 302.30%, which is near median its own 10-year median of 289.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veralto stock overvalued right now?
Based on GuruFocus' analysis, Veralto (VLTO) is currently considered Modestly Undervalued. The stock's GF Value™ is $106.81, compared to a current price of $88.32 — trading 17.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 302.30%, which is near median its 10-year median of 289.83 and 2467.3% above the Industrial Products industry median of 11.78. Veralto's overall GF Score™ is 61/100 with 1 warning sign 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 Veralto (VLTO), the current ROC (Joel Greenblatt) % is 302.30% 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 Veralto (VLTO) Overvalued in 2026?
Based on GuruFocus' analysis, Veralto stock appears to be undervalued.
The current stock price of $88.32 is trading 17.3% below its estimated GF Value™ of $106.81.
GuruFocus considers Veralto to be Modestly Undervalued.
Key valuation signals for VLTO:
ROC (Joel Greenblatt) %: 302.30% (near median its 10-year median of 289.83)
GF Value™: $106.81 vs. price of $88.32 (17.3% below fair value)
Industry Position: 2467.3% above the Industrial Products median (#25 of 3060)
No single metric tells the full story. See the VLTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Veralto is a diversified industrial firm organized into two segments. The water quality segment offers water analytics and water treatment solutions, while the product quality and innovation segment offers coding, packaging, and color solutions for consumer packaged goods and pharmaceuticals. Headquartered in Waltham, Massachusetts, the company has around 17,000 employees. Veralto generated approximately $5.5 billion in revenue in 2025.
61GF Score
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