What is Forest Laboratories Earnings Yield (Joel Greenblatt) %?
Forest Laboratories's Enterprise Value for the quarter that ended in Mar. 2014 was €18,691 Mil.
Forest Laboratories's EBIT for the trailing twelve months (TTM) ended in Mar. 2014 was €93 Mil. Forest Laboratories's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 0.48%.
The historical rank and industry rank for Forest Laboratories's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:FQX'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.4 Med: 9.7 Max: 30.1
Current: 0.4
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Forest Laboratories was 30.10%. The lowest was 0.40%. And the median was 9.70%.
FRA:FQX's Earnings Yield (Joel Greenblatt) % is not ranked
in the Drug Manufacturers industry.
Industry Median: 2.475
vs FRA:FQX: 0.40
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Forest Laboratories's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2014 was -31.15%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Forest Laboratories Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Forest Laboratories's Earnings Yield (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.
Competitive Comparison of Forest Laboratories's Earnings Yield (Joel Greenblatt) %
For the Drug Manufacturers - Specialty & Generic subindustry, Forest Laboratories's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (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.
Forest Laboratories's Earnings Yield (Joel Greenblatt) % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Forest Laboratories's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Forest Laboratories's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Forest Laboratoriess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2014 is calculated as
Forest Laboratories's EBIT for the trailing twelve months (TTM) ended in Mar. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €93 Mil.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Forest Laboratories Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Forest Laboratories's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Forest Laboratories (FRA:FQX) Business Description
Forest Laboratories, Inc. is a Delaware corporation organized in 1956. The Company develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription. The Company's most important United States products are marketed directly, or 'detailed,' to physicians by its salesforces. It emphasizes detailing to physicians of those branded ethical drugs which have the most potential for growth and benefit to patients. The Company also develops and introduces new products, including products developed in collaboration with licensing partners. The Company's products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. It actively promotes in the United States those branded products which have the most potential for growth and patient benefit, and which enable its salesforces to concentrate on groups of physicians who are high prescribers of its products. Such products include: Lexapro, its SSRI for the treatment of major depression in adults and adolescents and GAD in adults; Namenda, its NMDA antagonist for the treatment of moderate and severe Alzheimer's disease; Bystolic, its beta-blocker for the treatment of hypertension; and Savella, its newest product, an SNRI for the management of fibromyalgia. The Company's United Kingdom and Ireland subsidiaries sell both ethical products and over-the-counter preparations. Their most important products include Sudocrem, a topical preparation for the treatment of diaper rash; Colomycin, an antibiotic used in the treatment of cystic fibrosis; Infacol, used to treat infant colic; and Exorex, used in the treatment of eczema and psoriasis. The pharmaceutical industry is subject to comprehensive government regulation which substantially increases the difficulty and cost incurred in obtaining the approval to market newly proposed drug products and maintaining the approval to market existing drugs.
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