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. Carvana Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 36.27%.
The historical rank and industry rank for Carvana Co's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:CVNA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -54.35 Med: -19.75 Max: 20.77
Current: -6.42
During the past 12 years, Carvana Co's highest ROC (Joel Greenblatt) % was 20.77%. The lowest was -54.35%. And the median was -19.75%.
XSWX:CVNA's ROC (Joel Greenblatt) % is ranked worse than 86.15% of 1336
companies
in the Vehicles & Parts industry
Industry Median: 11.97
vs XSWX:CVNA: -6.42
Carvana Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Carvana Co (XSWX:CVNA) 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.
Carvana Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Carvana Co'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:CVNA vs PAG, ALTB, LAD: ROC (Joel Greenblatt) % Comparison
For the Auto & Truck Dealerships subindustry, Carvana Co'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.
Carvana Co ROC (Joel Greenblatt) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Carvana Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Carvana Co'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 36.27% mean?
Carvana Co (XSWX:CVNA) has a ROC (Joel Greenblatt) % of 36.27% 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 Carvana Co and its competitors. According to the industry distribution chart, Carvana Co ranks #1151 out of 1336 companies in the Vehicles & Parts industry, placing it in the top 86.2%.
Is Carvana Co's ROC (Joel Greenblatt) % too high?
Carvana Co's current ROC (Joel Greenblatt) % is 36.27%. The Vehicles & Parts industry median ROC (Joel Greenblatt) % is 11.97. Carvana Co's value of 36.27% is 203% above this industry median. Based on the distribution chart, Carvana Co ranks #1151 out of 1336 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Carvana Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Carvana Co's ROC (Joel Greenblatt) % compare to PAG and ALTB?
According to the Vehicles & Parts industry distribution chart, Carvana Co ranks #1151 out of 1336 companies for ROC (Joel Greenblatt) %. This places Carvana Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.97. Carvana Co's value of 36.27% is 203% above this benchmark. 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 Vehicles & Parts company?
The median ROC (Joel Greenblatt) % among Vehicles & Parts companies is 11.97, based on 1,336 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. Carvana Co's current ROC (Joel Greenblatt) % of 36.27% is 203% 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 Carvana Co and its competitors. For the Vehicles & Parts industry, the median ROC (Joel Greenblatt) % is 11.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carvana Co's current ROC (Joel Greenblatt) % is 36.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carvana Co stock overvalued right now?
Carvana Co (XSWX:CVNA) has a current ROC (Joel Greenblatt) % of 36.27%. The stock's GF Value™ is CHF63.63, compared to a current price of CHF52.50 — trading 17.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 36.27% and 203% above the Vehicles & Parts industry median of 11.97. Carvana Co's overall GF Score™ is 73/100 with 3 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 Carvana Co (XSWX:CVNA), the current ROC (Joel Greenblatt) % is 36.27% 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 Carvana Co (XSWX:CVNA) Overvalued in 2026?
Based on GuruFocus' analysis, Carvana Co stock appears to be undervalued.
The current stock price of CHF52.50 is trading 17.5% below its estimated GF Value™ of CHF63.63.
Key valuation signals for XSWX:CVNA:
ROC (Joel Greenblatt) %: 36.27%
GF Value™: CHF63.63 vs. price of CHF52.50 (17.5% below fair value)
Industry Position: 203% above the Vehicles & Parts median (#1151 of 1336)
No single metric tells the full story. See the XSWX:CVNA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
73GF Score
Get the complete analysis for XSWX:CVNA
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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