Roche Holding AGXSWX:RO -0.47%77 ROC (Joel Greenblatt) % is 66.34% as of Dec. 2025, which is 6% below its 10-year median of 70.65. GuruFocus rates XSWX:RO with a GF Score™ of 77/100 and a GF Value™ of CHF269.42 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 978 Drug Manufacturers companies, Roche Holding AG ranks better than 90.7% 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. Roche Holding AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 66.34%.
The historical rank and industry rank for Roche Holding AG's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:RO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 54.92 Med: 70.65 Max: 79.5
Current: 76.11
During the past 13 years, Roche Holding AG's highest ROC (Joel Greenblatt) % was 79.50%. The lowest was 54.92%. And the median was 70.65%.
XSWX:RO's ROC (Joel Greenblatt) % is ranked better than 90.7% of 978
companies
in the Drug Manufacturers industry
Industry Median: 11.32
vs XSWX:RO: 76.11
Roche Holding AG's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -3.10% per year.
Roche Holding AG (XSWX:RO) 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.
Roche Holding AG ROC (Joel Greenblatt) % Related Terms
Roche Holding AG ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Roche Holding 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:RO vs LLY, JNJ, ABBV: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - General subindustry, Roche Holding 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.
Roche Holding AG ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Roche Holding AG's ROC (Joel Greenblatt) % falls into.
Roche Holding AG 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 two times the semi-annual (Dec. 2025) 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 66.34% mean?
Roche Holding AG (XSWX:RO) has a ROC (Joel Greenblatt) % of 66.34% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Roche Holding AG and its competitors. This is near median its historical median of 70.65. Over the past decade, Roche Holding AG's ROC (Joel Greenblatt) % has ranged from 54.92 to 79.50. According to the industry distribution chart, Roche Holding AG ranks #91 out of 978 companies in the Drug Manufacturers industry, placing it in the top 9.3%.
Is Roche Holding AG's ROC (Joel Greenblatt) % too high?
Roche Holding AG's current ROC (Joel Greenblatt) % of 66.34% is near median its 10-year median of 70.65. Over the past 10 years, this metric has ranged from a low of 54.92 to a high of 79.50. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.32. Roche Holding AG's value of 66.34% is 486% above this industry median. Based on the distribution chart, Roche Holding AG ranks #91 out of 978 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Roche Holding AG has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's ROC (Joel Greenblatt) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #91 out of 978 companies for ROC (Joel Greenblatt) %. This places Roche Holding AG in the top 9% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.32. Roche Holding AG's value of 66.34% is 486% above this benchmark. Historically, Roche Holding AG's own ROC (Joel Greenblatt) % has ranged from 54.92 to 79.50 over the past decade. While the company's 10-year median is 70.65 vs. the industry median of 11.32, Roche Holding 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 11.32, based on 978 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. Roche Holding AG's current ROC (Joel Greenblatt) % of 66.34% is 486% 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 Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current ROC (Joel Greenblatt) % is 66.34%, which is near median its own 10-year median of 70.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:RO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF269.42, compared to a current price of CHF342.00 — trading 26.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 66.34%, which is near median its 10-year median of 70.65 and 486% above the Drug Manufacturers industry median of 11.32. Roche Holding AG's overall GF Score™ is 77/100 with 7 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 Roche Holding AG (XSWX:RO), the current ROC (Joel Greenblatt) % is 66.34% as of Dec. 2025. 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 Roche Holding AG (XSWX:RO) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF342.00 is trading 26.9% above its estimated GF Value™ of CHF269.42.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:RO:
ROC (Joel Greenblatt) %: 66.34% (near median its 10-year median of 70.65)
GF Value™: CHF269.42 vs. price of CHF342.00 (26.9% above fair value)
Industry Position: 486% above the Drug Manufacturers median (#91 of 978)
No single metric tells the full story. See the XSWX:RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
77GF Score
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