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Volcano (FRA:VQY) Earnings Yield (Joel Greenblatt) % : -3.12% (As of Sep. 2014)


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What is Volcano Earnings Yield (Joel Greenblatt) %?

Volcano's Enterprise Value for the quarter that ended in Sep. 2014 was €634.0 Mil. Volcano's EBIT for the trailing twelve months (TTM) ended in Sep. 2014 was €-18.1 Mil. Volcano's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was -3.12%.

The historical rank and industry rank for Volcano's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

FRA:VQY's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 0.005
* Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.

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) %. Volcano's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2014 was -1.50%. 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.


Volcano Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Volcano'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.

* Premium members only.

Volcano Earnings Yield (Joel Greenblatt) % Chart

Volcano Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.82 0.75 2.23 1.49 -2.01

Volcano Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.11 -2.01 -2.95 -2.36 -3.12

Competitive Comparison of Volcano's Earnings Yield (Joel Greenblatt) %

For the Medical Devices subindustry, Volcano'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.


Volcano's Earnings Yield (Joel Greenblatt) % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Volcano's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Volcano's Earnings Yield (Joel Greenblatt) % falls into.



Volcano Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Volcanos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2013 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=-17.459/904.7648
=-1.93 %

Volcano's EBIT for the trailing twelve months (TTM) ended in Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-18.1 Mil.



Volcano  (FRA:VQY) Earnings Yield (Joel Greenblatt) % Explanation

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.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Volcano Earnings Yield (Joel Greenblatt) % Related Terms

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Volcano (FRA:VQY) Business Description

Traded in Other Exchanges
N/A
Address
Volcano Corp incorporated in the state of Delaware in January 2000. The Company completed its initial public offering on June 15, 2006. The Company designs, develops, manufactures and commercializes a broad suite of precision guided therapy tools including intravascular ultrasound, or IVUS, and fractional flow reserve, or FFR, products. The IVUS products include single-procedure disposable phased array and rotational IVUS imaging catheters, and additional functionality options such as ChromaFlo stent apposition analysis. FFR offerings can be accessed through its multi-modality platforms, and it also provide FFR-only consoles. Its products include: IVUS Products, Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. Catheters, its single-use disposable catheters operate and interface solely with its family of consoles. ChromaFlo stent apposition analysis technology uses sequential IVUS frames to differentiate circulating blood from stationary or anchored tissue. SyncVision, Sync-Rx Ltd, or Sync-Rx, an Israel-based company that develops advanced software applications designed to optimize and facilitate trans-catheter cardiovascular interventions using automated online image processing. FFR products consist of pressure and flow consoles and single-procedure disposable pressure and flow guide wires. The Company's primary imaging competitors globally are Boston Scientific, Inc., or Boston Scientific, with its IVUS offering and St. Jude Medical, Inc., or St. Jude with its OCT offering. In Japan, it also competes with Terumo Corporation, which offers both IVUS and OCT. In the FFR market, its primary competitor is St. Jude. Because of the size of the vascular market opportunities, competitors and potential competitors have dedicated and will continue to dedicate significant resources to aggressively promote their products. It has registered and common law trademarks in the U.S. and elsewhere in the world including, but not limited to, Aim, Axsun, Bi-Trieval, Centriq, ChromaFlo, ComboMap, ComboWire, Core, Crux, Crux Biomedical, Define, Eagle Eye, ETNA, FACT, FloMap, FloWire, Ginko, GlyDx, Hi-Q, iFR, In-Line Digital, Instant Wave-Free Ratio, Intentio, Octave, pcFM, Precision Guided Therapy, PreView, PrimeWire, PrimeWire Prestige, ReFlow, Revolution, SlyDx, s5i, SmartMap, SpinVision, Sync-Rx, Trak Back, Valet, Verrata, VH, VIBE, Virtual Histology, Visions, Volcano, Wavewire, Xtract and Zuum. The Company's medical device products are subject to extensive and rigorous regulation by the FDA, as well as other federal and state regulatory bodies in the U.S. and comparable authorities in other countries.

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