Question about damage block

Does anyone know if damage block is applied after armor reduction, or if it is before armor reduction? For example... lets say your physical resistance from armor is 50%, and you take a hit for 500 damage. Does that mean you get 250 damage, then minus 40 if you had a vanguard? Or does that mean you take 460 damage, then minus 50% from the amor?

I guess it applies after armor reduction, but I haven't tested it.

http://dota2.gamepedia.com/Damage_Block

Damage Block will also occur before any armor reductions.

Oops, my bad.

Which is what makes vanguard pretty much a useless item.

Vanguard isn't necessarily a bad item, it's an alright item. Vanguard grants 250 hp +6 Hp regen, 80% chance to block 40 on a melee wielder and 20 on ranged wielder both with a 80%. Vanguard is only a good item if you can get it before the 15 minute mark. It pays off well but you shouldn't be building it after the 15 minute mark.

Think of it this way, there are some items you get for the early/middle/late phases of the game. Early stages would be boots of speed/ power treads, middle would be like a vlad, Helm of dominator, Armlet and vangard, and well late would be like AC, MKB and all those crazy things.

Vanguard's issue is it offers nothing for the team. A vanguard rusher is better off getting a mek in most cases. You only get it if your job is to sit in a fight and tank damage (bristleback). Heros like cent and axe need a blink dagger while DS would get a quick mek.

I think BB is pretty much the only hero I still build a vanguard on. I agree that a mek would have more utility for the team. I don't think it would be particularly good on BB because of his mana pool. There are also better items to take up your 6 slots anyway, like a Pipe or AC.

Vanguard is good during the first 15-20 minutes and offers nothing for the later stages.
That's why its almost always better to get Mek or Drums instead. Even casual Vitbooster is better since you could still go for a Heart later on this way.

Vanguard would be better if you could disassemble it, for example you can get it on spectre if you fight a lot, and then take the pieces it make a heart out of the vit booster, a refresher out of the ring, and sell the shield.
Right now i just get a casual ring and turn it into a refresh later on.