Bayer AGXSWX:BAYN 48 ROC (Joel Greenblatt) % is 107.82% as of Mar. 2026, which is 305% above its 10-year median of 26.62. GuruFocus rates XSWX:BAYN with a GF Score™ of 48/100 and a GF Value™ of CHF24.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 975 Drug Manufacturers companies, Bayer AG ranks worse than 68.51% 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. Bayer AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 107.82%.
The historical rank and industry rank for Bayer AG's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:BAYN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -107.19 Med: 26.62 Max: 49.52
Current: 0.64
During the past 13 years, Bayer AG's highest ROC (Joel Greenblatt) % was 49.52%. The lowest was -107.19%. And the median was 26.62%.
XSWX:BAYN's ROC (Joel Greenblatt) % is ranked worse than 68.51% of 975
companies
in the Drug Manufacturers industry
Industry Median: 11.44
vs XSWX:BAYN: 0.64
Bayer AG's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Bayer AG (XSWX:BAYN) 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.
The historical data trend for Bayer AG'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.
XSWX:BAYN vs LLY, JNJ, ABBV: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - General subindustry, Bayer AG'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.
Bayer AG ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bayer AG's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Bayer AG'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 107.82% mean?
Bayer AG (XSWX:BAYN) has a ROC (Joel Greenblatt) % of 107.82% 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 Bayer AG and its competitors. This is 305% above median its historical median of 26.62. According to the industry distribution chart, Bayer AG ranks #668 out of 975 companies in the Drug Manufacturers industry, placing it in the top 68.5%.
Is Bayer AG's ROC (Joel Greenblatt) % too high?
Bayer AG's current ROC (Joel Greenblatt) % of 107.82% is 305% above median its 10-year median of 26.62. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.44. Bayer AG's value of 107.82% is 842.5% above this industry median. Based on the distribution chart, Bayer AG ranks #668 out of 975 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Bayer AG has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bayer AG's ROC (Joel Greenblatt) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Bayer AG ranks #668 out of 975 companies for ROC (Joel Greenblatt) %. This places Bayer AG in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.44. Bayer AG's value of 107.82% is 842.5% above this benchmark. While the company's 10-year median is 26.62 vs. the industry median of 11.44, Bayer AG 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 Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.44, based on 975 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. Bayer AG's current ROC (Joel Greenblatt) % of 107.82% is 842.5% 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 Bayer AG and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bayer AG's current ROC (Joel Greenblatt) % is 107.82%, which is 305% above median its own 10-year median of 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bayer AG stock overvalued right now?
Based on GuruFocus' analysis, Bayer AG (XSWX:BAYN) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF24.74, compared to a current price of CHF42.49 — trading 71.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 107.82%, which is 305% above median its 10-year median of 26.62 and 842.5% above the Drug Manufacturers industry median of 11.44. Bayer AG's overall GF Score™ is 48/100 with 6 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 Bayer AG (XSWX:BAYN), the current ROC (Joel Greenblatt) % is 107.82% 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 Bayer AG (XSWX:BAYN) Overvalued in 2026?
Based on GuruFocus' analysis, Bayer AG stock appears to be overvalued.
The current stock price of CHF42.49 is trading 71.7% above its estimated GF Value™ of CHF24.74.
GuruFocus considers Bayer AG to be Significantly Overvalued.
Key valuation signals for XSWX:BAYN:
ROC (Joel Greenblatt) %: 107.82% (305% above median its 10-year median of 26.62)
GF Value™: CHF24.74 vs. price of CHF42.49 (71.7% above fair value)
Industry Position: 842.5% above the Drug Manufacturers median (#668 of 975)
No single metric tells the full story. See the XSWX:BAYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bayer is a German healthcare and agriculture conglomerate. Healthcare provides close to half of the company's sales and includes pharmaceutical drugs (about 38% of total sales in 2025) as well as vitamins and other consumer healthcare products (13% of total). The firm's crop science business (47% of total) sells seeds, pesticides, herbicides, and fungicides, which was expanded through its 2018 acquisition of Monsanto.
48GF Score
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