Zimmer Biomet HoldingsXSWX:ZBH +2.16%72 ROC (Joel Greenblatt) % is 30.03% as of Mar. 2026, which is 69% above its 10-year median of 17.75. GuruFocus rates XSWX:ZBH with a GF Score™ of 72/100 and a GF Value™ of CHF99.84. The stock has 3 warning signs investors should review. Among 840 Medical Devices & Instruments companies, Zimmer Biomet Holdings ranks better than 75.95% 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. Zimmer Biomet Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 30.03%.
The historical rank and industry rank for Zimmer Biomet Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:ZBH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.44 Med: 17.75 Max: 30.18
Current: 24.86
During the past 13 years, Zimmer Biomet Holdings's highest ROC (Joel Greenblatt) % was 30.18%. The lowest was 0.44%. And the median was 17.75%.
XSWX:ZBH's ROC (Joel Greenblatt) % is ranked better than 75.95% of 840
companies
in the Medical Devices & Instruments industry
Industry Median: 4.035
vs XSWX:ZBH: 24.86
Zimmer Biomet Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 48.30% 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.
Zimmer Biomet Holdings ROC (Joel Greenblatt) % Related Terms
Zimmer Biomet Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Zimmer Biomet Holdings'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:ZBH vs STE, PEN, GMED: ROC (Joel Greenblatt) % Comparison
For the Medical Devices subindustry, Zimmer Biomet Holdings'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.
Zimmer Biomet Holdings ROC (Joel Greenblatt) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Zimmer Biomet Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Zimmer Biomet Holdings'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 30.03% mean?
Zimmer Biomet Holdings (XSWX:ZBH) has a ROC (Joel Greenblatt) % of 30.03% 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 Zimmer Biomet Holdings and its competitors. This is 69% above median its historical median of 17.75. Over the past decade, Zimmer Biomet Holdings' ROC (Joel Greenblatt) % has ranged from 0.44 to 30.18. According to the industry distribution chart, Zimmer Biomet Holdings ranks #202 out of 840 companies in the Medical Devices & Instruments industry, placing it in the top 24%.
Is Zimmer Biomet Holdings' ROC (Joel Greenblatt) % too high?
Zimmer Biomet Holdings' current ROC (Joel Greenblatt) % of 30.03% is 69% above median its 10-year median of 17.75. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 30.18. The Medical Devices & Instruments industry median ROC (Joel Greenblatt) % is 4.04. Zimmer Biomet Holdings' value of 30.03% is 644.2% above this industry median. Based on the distribution chart, Zimmer Biomet Holdings ranks #202 out of 840 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Zimmer Biomet Holdings has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Zimmer Biomet Holdings' ROC (Joel Greenblatt) % compare to STE and PEN?
According to the Medical Devices & Instruments industry distribution chart, Zimmer Biomet Holdings ranks #202 out of 840 companies for ROC (Joel Greenblatt) %. This places Zimmer Biomet Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 4.04. Zimmer Biomet Holdings' value of 30.03% is 644.2% above this benchmark. Historically, Zimmer Biomet Holdings' own ROC (Joel Greenblatt) % has ranged from 0.44 to 30.18 over the past decade. While the company's 10-year median is 17.75 vs. the industry median of 4.04, Zimmer Biomet Holdings 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 Medical Devices & Instruments company?
The median ROC (Joel Greenblatt) % among Medical Devices & Instruments companies is 4.04, based on 840 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. Zimmer Biomet Holdings's current ROC (Joel Greenblatt) % of 30.03% is 644.2% 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 Zimmer Biomet Holdings and its competitors. For the Medical Devices & Instruments industry, the median ROC (Joel Greenblatt) % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zimmer Biomet Holdings's current ROC (Joel Greenblatt) % is 30.03%, which is 69% above median its own 10-year median of 17.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zimmer Biomet Holdings stock overvalued right now?
Zimmer Biomet Holdings (XSWX:ZBH) has a current ROC (Joel Greenblatt) % of 30.03%. The stock's GF Value™ is CHF99.84, compared to a current price of CHF71.00 — trading 28.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 30.03%, which is 69% above median its 10-year median of 17.75 and 644.2% above the Medical Devices & Instruments industry median of 4.04. Zimmer Biomet Holdings' overall GF Score™ is 72/100 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 Zimmer Biomet Holdings (XSWX:ZBH), the current ROC (Joel Greenblatt) % is 30.03% 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 Zimmer Biomet Holdings (XSWX:ZBH) Overvalued in 2026?
Based on GuruFocus' analysis, Zimmer Biomet Holdings stock appears to be undervalued.
The current stock price of CHF71.00 is trading 28.9% below its estimated GF Value™ of CHF99.84.
Key valuation signals for XSWX:ZBH:
ROC (Joel Greenblatt) %: 30.03% (69% above median its 10-year median of 17.75)
GF Value™: CHF99.84 vs. price of CHF71.00 (28.9% below fair value)
Industry Position: 644.2% above the Medical Devices & Instruments median (#202 of 840)
No single metric tells the full story. See the XSWX:ZBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two-thirds of total revenue is derived from sales of large joints; another fourth comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.
72GF Score
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