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Bath & Body WorksWBO:LBRA -4.11%63 ROC (Joel Greenblatt) % is 45.43% as of Apr. 2026, which is 25% below its 10-year median of 60.26. GuruFocus rates WBO:LBRA with a GF Score™ of 63/100 and a GF Value™ of €29.73 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,126 Retail - Cyclical companies, Bath & Body Works ranks better than 88.63% 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. Bath & Body Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 45.43%.
The historical rank and industry rank for Bath & Body Works's ROC (Joel Greenblatt) % or its related term are showing as below:
WBO:LBRA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 23.41 Med: 60.26 Max: 90.21
Current: 53.14
During the past 13 years, Bath & Body Works's highest ROC (Joel Greenblatt) % was 90.21%. The lowest was 23.41%. And the median was 60.26%.
WBO:LBRA's ROC (Joel Greenblatt) % is ranked better than 88.63% of 1126
companies
in the Retail - Cyclical industry
Industry Median: 11.57
vs WBO:LBRA: 53.14
Bath & Body Works's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.20% per year.
Bath & Body Works (WBO:LBRA) 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.
Bath & Body Works ROC (Joel Greenblatt) % Related Terms
Bath & Body Works ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Bath & Body Works'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.
WBO:LBRA vs MNSO, RH, ASO: ROC (Joel Greenblatt) % Comparison
For the Specialty Retail subindustry, Bath & Body Works'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.
Bath & Body Works ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's ROC (Joel Greenblatt) % falls into.
Bath & Body Works ROC (Joel Greenblatt) % Calculation
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 45.43% mean?
Bath & Body Works (WBO:LBRA) has a ROC (Joel Greenblatt) % of 45.43% 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 Bath & Body Works and its competitors. This is 25% below median its historical median of 60.26. Over the past decade, Bath & Body Works' ROC (Joel Greenblatt) % has ranged from 23.41 to 90.21. According to the industry distribution chart, Bath & Body Works ranks #128 out of 1126 companies in the Retail - Cyclical industry, placing it in the top 11.4%.
Is Bath & Body Works' ROC (Joel Greenblatt) % too high?
Bath & Body Works' current ROC (Joel Greenblatt) % of 45.43% is 25% below median its 10-year median of 60.26. Over the past 10 years, this metric has ranged from a low of 23.41 to a high of 90.21. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.57. Bath & Body Works' value of 45.43% is 292.7% above this industry median. Based on the distribution chart, Bath & Body Works ranks #128 out of 1126 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Bath & Body Works has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bath & Body Works' ROC (Joel Greenblatt) % compare to MNSO and RH?
According to the Retail - Cyclical industry distribution chart, Bath & Body Works ranks #128 out of 1126 companies for ROC (Joel Greenblatt) %. This places Bath & Body Works in the top 11% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.57. Bath & Body Works' value of 45.43% is 292.7% above this benchmark. Historically, Bath & Body Works' own ROC (Joel Greenblatt) % has ranged from 23.41 to 90.21 over the past decade. While the company's 10-year median is 60.26 vs. the industry median of 11.57, Bath & Body Works 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 Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.57, based on 1,126 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. Bath & Body Works's current ROC (Joel Greenblatt) % of 45.43% is 292.7% 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 Bath & Body Works and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bath & Body Works's current ROC (Joel Greenblatt) % is 45.43%, which is 25% below median its own 10-year median of 60.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bath & Body Works stock overvalued right now?
Based on GuruFocus' analysis, Bath & Body Works (WBO:LBRA) is currently considered Significantly Undervalued. The stock's GF Value™ is €29.73, compared to a current price of €18.22 — trading 38.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 45.43%, which is 25% below median its 10-year median of 60.26 and 292.7% above the Retail - Cyclical industry median of 11.57. Bath & Body Works' overall GF Score™ is 63/100 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 Bath & Body Works (WBO:LBRA), the current ROC (Joel Greenblatt) % is 45.43% 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 Bath & Body Works (WBO:LBRA) Overvalued in 2026?
Based on GuruFocus' analysis, Bath & Body Works stock appears to be undervalued.
The current stock price of €18.22 is trading 38.7% below its estimated GF Value™ of €29.73.
GuruFocus considers Bath & Body Works to be Significantly Undervalued.
Key valuation signals for WBO:LBRA:
ROC (Joel Greenblatt) %: 45.43% (25% below median its 10-year median of 60.26)
GF Value™: €29.73 vs. price of €18.22 (38.7% below fair value)
Industry Position: 292.7% above the Retail - Cyclical median (#128 of 1126)
No single metric tells the full story. See the WBO:LBRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bath & Body Works is a specialty home fragrance and fragrant body care retailer operating under the Bath & Body Works, C.O. Bigelow, and White Barn brands. The company generates most of its business in North America, with just 4% of sales from international markets in fiscal 2025. For fiscal 2025, 77% of sales stemmed from the brick-and-mortar network of more than 1,900 retail stores, similar to 2024 levels, as consumer shopping patterns remained normal. Future growth is expected from store upgrades, digital and international channels, as well as adjacent category expansions like men's and lip.
63GF Score
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