F5's Enterprise Value for the quarter that ended in Dec. 2023 was $9,974 Mil.
F5's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $611 Mil. F5's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 6.13%.
The historical rank and industry rank for F5's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FFIV'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.66 Med: 6.29 Max: 10.32
Current: 6.04
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of F5 was 10.32%. The lowest was 2.66%. And the median was 6.29%.
FFIV's Earnings Yield (Joel Greenblatt) % is ranked better than 73.73% of 2840
companies
in the Software industry
Industry Median: 1.185
vs FFIV: 6.04
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) %. F5's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 4.88%. 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.
F5 Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for F5'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.
F5 Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Earnings Yield (Joel Greenblatt) %
6.91
5.66
3.32
4.88
5.97
F5 Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Earnings Yield (Joel Greenblatt) %
4.71
5.04
5.72
5.97
6.13
Competitive Comparison
For the Software - Infrastructure subindustry, F5'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.
F5 Earnings Yield (Joel Greenblatt) % Distribution
For the Software industry and Technology sector, F5's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where F5's Earnings Yield (Joel Greenblatt) % falls into.
F5 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.
F5s Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Sep. 2023 is calculated as
F5'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 $611 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.
F5 Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of F5's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, has about 6,500 employees, and generates about 55% its revenue within the Americas, 25% in EMEA, and 20% in APAC/Japan.
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