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. Rocket Lab's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -41.76%.
The historical rank and industry rank for Rocket Lab's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:RKLB'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -119.71 Med: -77.01 Max: -49.75
Current: -49.75
During the past 6 years, Rocket Lab's highest ROC (Joel Greenblatt) % was -49.75%. The lowest was -119.71%. And the median was -77.01%.
XSWX:RKLB's ROC (Joel Greenblatt) % is ranked worse than 82.82% of 355
companies
in the Aerospace & Defense industry
Industry Median: 10.76
vs XSWX:RKLB: -49.75
Rocket Lab's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.90% 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.
Rocket Lab ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Rocket Lab'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.
For the Aerospace & Defense subindustry, Rocket Lab'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.
Rocket Lab ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Rocket Lab'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 -41.76% mean?
Rocket Lab (XSWX:RKLB) has a ROC (Joel Greenblatt) % of -41.76% 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 Rocket Lab and its competitors. According to the industry distribution chart, Rocket Lab ranks #294 out of 355 companies in the Aerospace & Defense industry, placing it in the top 82.8%.
Is Rocket Lab's ROC (Joel Greenblatt) % too high?
Rocket Lab's current ROC (Joel Greenblatt) % is -41.76%. Based on the distribution chart, Rocket Lab ranks #294 out of 355 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Rocket Lab has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Rocket Lab's ROC (Joel Greenblatt) % compare to ?
According to the Aerospace & Defense industry distribution chart, Rocket Lab ranks #294 out of 355 companies for ROC (Joel Greenblatt) %. This places Rocket Lab in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.76. 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 an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.76, based on 355 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. 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 Rocket Lab and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocket Lab's current ROC (Joel Greenblatt) % is -41.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket Lab stock overvalued right now?
Rocket Lab (XSWX:RKLB) has a current ROC (Joel Greenblatt) % of -41.76%. The stock's GF Value™ is CHF21.59, compared to a current price of CHF81.13 — trading 275.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is -41.76%. Rocket Lab's overall GF Score™ is 71/100 with 1 warning sign 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 Rocket Lab (XSWX:RKLB), the current ROC (Joel Greenblatt) % is -41.76% 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 Rocket Lab (XSWX:RKLB) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket Lab stock appears to be overvalued.
The current stock price of CHF81.13 is trading 275.8% above its estimated GF Value™ of CHF21.59.
Key valuation signals for XSWX:RKLB:
ROC (Joel Greenblatt) %: -41.76%
GF Value™: CHF21.59 vs. price of CHF81.13 (275.8% above fair value)
No single metric tells the full story. See the XSWX:RKLB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, and rest of the world and earns key revenue from the United States.
71GF Score
Get the complete analysis for XSWX:RKLB
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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