The Home DepotXSWX:HD +0.99%83 ROC (Joel Greenblatt) % is 41.51% as of Apr. 2026, which is 29% below its 10-year median of 58.45. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF304.27. The stock has 3 warning signs investors should review. Among 1,123 Retail - Cyclical companies, The Home Depot ranks better than 85.49% 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. The Home Depot's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 41.51%.
The historical rank and industry rank for The Home Depot's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:HD'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 45.22 Med: 58.45 Max: 72.55
Current: 45.22
During the past 13 years, The Home Depot's highest ROC (Joel Greenblatt) % was 72.55%. The lowest was 45.22%. And the median was 58.45%.
XSWX:HD's ROC (Joel Greenblatt) % is ranked better than 85.49% of 1123
companies
in the Retail - Cyclical industry
Industry Median: 11.57
vs XSWX:HD: 45.22
The Home Depot's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.60% per year.
The Home Depot (XSWX:HD) 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 Home Depot ROC (Joel Greenblatt) % Related Terms
The Home Depot ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The Home Depot'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:HD vs LOW, FND, HVT: ROC (Joel Greenblatt) % Comparison
For the Home Improvement Retail subindustry, The Home Depot'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.
The Home Depot ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Home Depot's ROC (Joel Greenblatt) % falls into.
The Home Depot 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 41.51% mean?
The Home Depot (XSWX:HD) has a ROC (Joel Greenblatt) % of 41.51% 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 The Home Depot and its competitors. This is 29% below median its historical median of 58.45. Over the past decade, The Home Depot's ROC (Joel Greenblatt) % has ranged from 45.22 to 72.55. According to the industry distribution chart, The Home Depot ranks #163 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 14.5%.
Is The Home Depot's ROC (Joel Greenblatt) % too high?
The Home Depot's current ROC (Joel Greenblatt) % of 41.51% is 29% below median its 10-year median of 58.45. Over the past 10 years, this metric has ranged from a low of 45.22 to a high of 72.55. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.57. The Home Depot's value of 41.51% is 258.8% above this industry median. Based on the distribution chart, The Home Depot ranks #163 out of 1123 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, The Home Depot has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's ROC (Joel Greenblatt) % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #163 out of 1123 companies for ROC (Joel Greenblatt) %. This places The Home Depot in the top 15% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.57. The Home Depot's value of 41.51% is 258.8% above this benchmark. Historically, The Home Depot's own ROC (Joel Greenblatt) % has ranged from 45.22 to 72.55 over the past decade. While the company's 10-year median is 58.45 vs. the industry median of 11.57, The Home Depot 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 1,123 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. The Home Depot's current ROC (Joel Greenblatt) % of 41.51% is 258.8% 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 The Home Depot 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. The Home Depot's current ROC (Joel Greenblatt) % is 41.51%, which is 29% below median its own 10-year median of 58.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Home Depot stock overvalued right now?
The Home Depot (XSWX:HD) has a current ROC (Joel Greenblatt) % of 41.51%. The stock's GF Value™ is CHF304.27, compared to a current price of CHF282.70 — trading 7.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 41.51%, which is 29% below median its 10-year median of 58.45 and 258.8% above the Retail - Cyclical industry median of 11.57. The Home Depot's overall GF Score™ is 83/100 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 The Home Depot (XSWX:HD), the current ROC (Joel Greenblatt) % is 41.51% 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 The Home Depot (XSWX:HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of CHF282.70 is trading 7.1% below its estimated GF Value™ of CHF304.27.
Key valuation signals for XSWX:HD:
ROC (Joel Greenblatt) %: 41.51% (29% below median its 10-year median of 58.45)
GF Value™: CHF304.27 vs. price of CHF282.70 (7.1% below fair value)
Industry Position: 258.8% above the Retail - Cyclical median (#163 of 1123)
No single metric tells the full story. See the XSWX:HD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Depot is the world's largest home improvement specialty retailer, operating 2,361 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the 2025 purchase of GMS will lift building product sales through 1,250 distribution locations.
83GF Score
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