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. Spotify Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 897.29%.
The historical rank and industry rank for Spotify Technology's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:SPOT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1652.27 Med: -56.41 Max: 704.66
Current: 704.66
During the past 11 years, Spotify Technology's highest ROC (Joel Greenblatt) % was 704.66%. The lowest was -1652.27%. And the median was -56.41%.
XSWX:SPOT's ROC (Joel Greenblatt) % is ranked better than 92.35% of 549
companies
in the Interactive Media industry
Industry Median: 20.1
vs XSWX:SPOT: 704.66
Spotify Technology's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% 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.
Spotify Technology ROC (Joel Greenblatt) % Related Terms
Spotify Technology ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Spotify Technology'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:SPOT vs NBIS, BIDU, RDDT: ROC (Joel Greenblatt) % Comparison
For the Internet Content & Information subindustry, Spotify Technology'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.
Spotify Technology ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Spotify Technology'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 897.29% mean?
Spotify Technology (XSWX:SPOT) has a ROC (Joel Greenblatt) % of 897.29% 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 Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #42 out of 549 companies in the Interactive Media industry, placing it in the top 7.7%.
Is Spotify Technology's ROC (Joel Greenblatt) % too high?
Spotify Technology's current ROC (Joel Greenblatt) % is 897.29%. The Interactive Media industry median ROC (Joel Greenblatt) % is 20.10. Spotify Technology's value of 897.29% is 4364.1% above this industry median. Based on the distribution chart, Spotify Technology ranks #42 out of 549 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Spotify Technology has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's ROC (Joel Greenblatt) % compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #42 out of 549 companies for ROC (Joel Greenblatt) %. This places Spotify Technology in the top 8% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.10. Spotify Technology's value of 897.29% is 4364.1% 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 an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 20.10, based on 549 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. Spotify Technology's current ROC (Joel Greenblatt) % of 897.29% is 4364.1% 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 Spotify Technology and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 20.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current ROC (Joel Greenblatt) % is 897.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spotify Technology stock overvalued right now?
Spotify Technology (XSWX:SPOT) has a current ROC (Joel Greenblatt) % of 897.29%. The stock's GF Value™ is CHF395.49, compared to a current price of CHF382.50 — trading 3.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 897.29% and 4364.1% above the Interactive Media industry median of 20.10. Spotify Technology's overall GF Score™ is 77/100 with 2 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 Spotify Technology (XSWX:SPOT), the current ROC (Joel Greenblatt) % is 897.29% 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 Spotify Technology (XSWX:SPOT) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of CHF382.50 is trading 3.3% below its estimated GF Value™ of CHF395.49.
Key valuation signals for XSWX:SPOT:
ROC (Joel Greenblatt) %: 897.29%
GF Value™: CHF395.49 vs. price of CHF382.50 (3.3% below fair value)
Industry Position: 4364.1% above the Interactive Media median (#42 of 549)
No single metric tells the full story. See the XSWX:SPOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spotify is the leading global music streaming service, with over 750 million monthly active users and nearly 300 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from subscribers, who pay a monthly fee to access a music library that includes most of the most popular songs ever recorded, including all from the major record labels. The firm also offers access to audiobooks and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog, but cannot customize a similar on-demand experience.
77GF Score
Get the complete analysis for XSWX:SPOT
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:SPOT has been successfully added to your 
