Advance Auto PartsAAP +5.71%69 ROC (Joel Greenblatt) % is 11.37% as of Mar. 2026, which is 36% below its 10-year median of 17.63. GuruFocus rates AAP with a GF Score™ of 69/100 and a GF Value™ of $52.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,337 Vehicles & Parts companies, Advance Auto Parts ranks worse than 63.8% 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. Advance Auto Parts's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 11.37%.
The historical rank and industry rank for Advance Auto Parts's ROC (Joel Greenblatt) % or its related term are showing as below:
AAP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -17.45 Med: 17.63 Max: 32.98
Current: 7.25
During the past 13 years, Advance Auto Parts's highest ROC (Joel Greenblatt) % was 32.98%. The lowest was -17.45%. And the median was 17.63%.
AAP's ROC (Joel Greenblatt) % is ranked worse than 63.8% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 11.83
vs AAP: 7.25
Advance Auto Parts's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Advance Auto Parts (NYSE:AAP) 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.
Advance Auto Parts ROC (Joel Greenblatt) % Related Terms
Advance Auto Parts ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts'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.
AAP vs DORM, ATMU, DAN: ROC (Joel Greenblatt) % Comparison
For the Auto Parts subindustry, Advance Auto Parts'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.
Advance Auto Parts ROC (Joel Greenblatt) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's ROC (Joel Greenblatt) % falls into.
Advance Auto Parts 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 (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 11.37% mean?
Advance Auto Parts (AAP) has a ROC (Joel Greenblatt) % of 11.37% 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 Advance Auto Parts and its competitors. This is 36% below median its historical median of 17.63. According to the industry distribution chart, Advance Auto Parts ranks #853 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 63.8%.
Is Advance Auto Parts' ROC (Joel Greenblatt) % too high?
Advance Auto Parts' current ROC (Joel Greenblatt) % of 11.37% is 36% below median its 10-year median of 17.63. The Vehicles & Parts industry median ROC (Joel Greenblatt) % is 11.83. Advance Auto Parts' value of 11.37% is 3.9% below this industry median. Based on the distribution chart, Advance Auto Parts ranks #853 out of 1337 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Advance Auto Parts has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' ROC (Joel Greenblatt) % compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #853 out of 1337 companies for ROC (Joel Greenblatt) %. This places Advance Auto Parts in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.83. Advance Auto Parts' value of 11.37% is 3.9% below this benchmark. While the company's 10-year median is 17.63 vs. the industry median of 11.83, Advance Auto Parts has consistently been below 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 Vehicles & Parts company?
The median ROC (Joel Greenblatt) % among Vehicles & Parts companies is 11.83, based on 1,337 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. Advance Auto Parts's current ROC (Joel Greenblatt) % of 11.37% is 3.9% below 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 Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median ROC (Joel Greenblatt) % is 11.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current ROC (Joel Greenblatt) % is 11.37%, which is 36% below median its own 10-year median of 17.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (AAP) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.12, compared to a current price of $57.94 — trading 11.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 11.37%, which is 36% below median its 10-year median of 17.63 and 3.9% below the Vehicles & Parts industry median of 11.83. Advance Auto Parts' overall GF Score™ is 69/100 with 5 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 Advance Auto Parts (AAP), the current ROC (Joel Greenblatt) % is 11.37% 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 Advance Auto Parts (AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of $57.94 is trading 11.2% above its estimated GF Value™ of $52.12.
GuruFocus considers Advance Auto Parts to be Modestly Overvalued.
Key valuation signals for AAP:
ROC (Joel Greenblatt) %: 11.37% (36% below median its 10-year median of 17.63)
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 3.9% below the Vehicles & Parts median (#853 of 1337)
No single metric tells the full story. See the AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
69GF Score
Get the complete analysis for AAP
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
AAP has been successfully added to your 
