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19.92 (1y: -25%)
Market Cap 3.19 B P/E(ttm) 25.40
Enterprise Value 2.3 B P/B 4.50
EDU- NYSE (USA)
New Oriental Education & Technology Group Inc.
Not Rated
Top Ranked Predictable Companies
$19.92
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New Oriental Education & Technology Group Inc. Earnings Yield (Joel Greenblatt): 7.1 ( as of Feb13)

* All numbers are in millions except for per share data EDU 10-Y Financials »

Definition

In his book, “The Little That Beat the Market,” hedge fund manager Joel Greenblatt defines Earnings Yield as:

Earnings Yield = Operating Income / Enterprise Value

Formula

Earnings Yield = Operating Income / Enterprise Value

New Oriental Education & Technology Group Inc. earning_yield_greenblatt Calculation

* All numbers are in millions except for per share data

New Oriental Education & Technology Group Inc. Annual Data

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New Oriental Education & Technology Group Inc. Quarterly Data

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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.

Beaware

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 based on Don Yacktman’s definition is a better measure of the expected rate of return for a stock.

Related Terms

Operating Income, Enterprise Value, Earnings Yield, Forward Rate of Return
* All numbers are in millions except for per share data

New Oriental Education & Technology Group Inc. Annual Data

This information is for Premium Members Only.


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May03May04May05May06May07May08May09May10May11May12
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New Oriental Education & Technology Group Inc. Quarterly Data

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Nov10Feb11May11Aug11Nov11Feb12May12Aug12Nov12Feb13
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