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. Vanda Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -1,456.88%.
The historical rank and industry rank for Vanda Pharmaceuticals's ROC (Joel Greenblatt) % or its related term are showing as below:
VNDA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1244.66 Med: -42.28 Max: 447.15
Current: -1244.66
During the past 13 years, Vanda Pharmaceuticals's highest ROC (Joel Greenblatt) % was 447.15%. The lowest was -1244.66%. And the median was -42.28%.
VNDA's ROC (Joel Greenblatt) % is ranked worse than 69.77% of 1323
companies
in the Biotechnology industry
Industry Median: -296.6
vs VNDA: -1244.66
Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals ROC (Joel Greenblatt) % Related Terms
Vanda Pharmaceuticals ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Vanda Pharmaceuticals'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.
VNDA vs AVIR, OABI, TENX: ROC (Joel Greenblatt) % Comparison
For the Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals ROC (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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 -1,456.88% mean?
Vanda Pharmaceuticals (VNDA) has a ROC (Joel Greenblatt) % of -1,456.88% 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 Vanda Pharmaceuticals and its competitors. According to the industry distribution chart, Vanda Pharmaceuticals ranks #923 out of 1323 companies in the Biotechnology industry, placing it in the top 69.8%.
Is Vanda Pharmaceuticals' ROC (Joel Greenblatt) % too high?
Vanda Pharmaceuticals' current ROC (Joel Greenblatt) % is -1,456.88%. Based on the distribution chart, Vanda Pharmaceuticals ranks #923 out of 1323 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Vanda Pharmaceuticals has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' ROC (Joel Greenblatt) % compare to AVIR and OABI?
According to the Biotechnology industry distribution chart, Vanda Pharmaceuticals ranks #923 out of 1323 companies for ROC (Joel Greenblatt) %. This places Vanda Pharmaceuticals in the lower half of its industry. 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 Biotechnology company?
A good ROC (Joel Greenblatt) % depends on the Biotechnology industry context. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Vanda Pharmaceuticals and its competitors. Vanda Pharmaceuticals's current ROC (Joel Greenblatt) % is -1,456.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (VNDA) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.54, compared to a current price of $6.24 — trading 12.6% above its estimated fair value. The current ROC (Joel Greenblatt) % is -1,456.88%. Vanda Pharmaceuticals' overall GF Score™ is 73/100 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 Vanda Pharmaceuticals (VNDA), the current ROC (Joel Greenblatt) % is -1,456.88% 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 Vanda Pharmaceuticals (VNDA) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be overvalued.
The current stock price of $6.24 is trading 12.6% above its estimated GF Value™ of $5.54.
GuruFocus considers Vanda Pharmaceuticals to be Modestly Overvalued.
Key valuation signals for VNDA:
ROC (Joel Greenblatt) %: -1,456.88%
GF Value™: $5.54 vs. price of $6.24 (12.6% above fair value)
No single metric tells the full story. See the VNDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
73GF Score
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