What is Arch Capital Group Earnings Yield (Joel Greenblatt) %?
Arch Capital Group's Enterprise Value for the quarter that ended in Dec. 2023 was $30,373 Mil.
Arch Capital Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $3,518 Mil. Arch Capital Group's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 11.59%.
The historical rank and industry rank for Arch Capital Group's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ACGL'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.86 Med: 8.1 Max: 14.08
Current: 9.31
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Arch Capital Group was 14.08%. The lowest was 3.86%. And the median was 8.10%.
ACGL's Earnings Yield (Joel Greenblatt) % is ranked better than 61.84% of 490
companies
in the Insurance industry
Industry Median: 5.58
vs ACGL: 9.31
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) %. Arch Capital Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 29.18%. 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.
Arch Capital Group Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Arch Capital Group'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.
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Arch Capital Group Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Arch Capital Group's Earnings Yield (Joel Greenblatt) %
For the Insurance - Diversified subindustry, Arch Capital Group'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.
Arch Capital Group's Earnings Yield (Joel Greenblatt) % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Arch Capital Group's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Arch Capital Group's Earnings Yield (Joel Greenblatt) % falls into.
Arch Capital Group 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.
Arch Capital Groups Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
Arch Capital Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,518 Mil.
Arch Capital Group (NAS:ACGL) 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.
Arch Capital Group Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Arch Capital Group's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arch Capital Group (Arch Capital Group) Business Description
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and South Africa. The business operates through three segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients worldwide across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
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