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Fitbit (Fitbit) Earnings Yield (Joel Greenblatt) % : -24.81% (As of Sep. 2020)


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What is Fitbit Earnings Yield (Joel Greenblatt) %?

Fitbit's Enterprise Value for the quarter that ended in Sep. 2020 was $1,560 Mil. Fitbit's EBIT for the trailing twelve months (TTM) ended in Sep. 2020 was $-383 Mil. Fitbit's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2020 was -24.81%.

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

FIT's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Hardware industry.
Industry Median: 3.35
* 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) %. Fitbit's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2020 was 0.00%. 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.


Fitbit Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Fitbit'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.

Fitbit Earnings Yield (Joel Greenblatt) % Chart

Fitbit Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial 5.98 -11.89 -29.41 -34.97 -24.88

Fitbit Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -32.05 -24.88 -25.13 -28.74 -24.81

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

For the Scientific & Technical Instruments subindustry, Fitbit'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.


Fitbit's Earnings Yield (Joel Greenblatt) % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Fitbit's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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



Fitbit 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.

Fitbits Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2019 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=-320.713/1314.57631
=-24.40 %

Fitbit's EBIT for the trailing twelve months (TTM) ended in Sep. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-383 Mil.



Fitbit  (NYSE:FIT) 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.


Fitbit Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Fitbit's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fitbit (Fitbit) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Fitbit Inc (NYSE:FIT) » Definitions » Earnings Yield (Joel Greenblatt) %
Traded in Other Exchanges
N/A
Address
199 Fremont Street, 14th Floor, San Francisco, CA, USA, 94105
Fitbit Inc is a provider of health and fitness devices. The company's platform combines connected health and fitness devices with software and services. Its platform includes a family of wearable devices which include health and fitness trackers and smartwatches, enable the users to view data about their daily activity, exercise and sleep in real-time. The company software and services which include an online dashboard and mobile app, provide users with data analytics, motivational and social tools, and virtual coaching through customized fitness plans and interactive workouts.
Executives
Eric N. Friedman director, 10 percent owner, officer: CTO C/O FITBIT, INC. 405 HOWARD STREET SAN FRANCISCO CA 94105
Andy Missan officer: EVP, General Counsel, Sect. C/O FITBIT, INC., 405 HOWARD STREET, SAN FRANCISCO CA 94105
Ronald W Kisling officer: Chief Financial Officer 2400 BRIDGE PARKWAY, REDWOOD SHORES CA 940651166
Jeffrey P Devine officer: EVP of Operations 950 WEST MAUDE AVE SUNNYVALE X1 94085
James Park director, 10 percent owner, officer: PRESIDENT, CEO, COB C/O FITBIT, INC., 405 HOWARD STREET, SAN FRANCISCO CA 94105
Christopher B Paisley director 14870 THREE OAKS COURT, SARATOGA CA 95070
Bradley M Fluegel director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Glenda J Flanagan director 550 BOWIE STREET, AUSTIN TX 78703
Matthew S Bromberg director C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Laura Alber director
Steven Joseph Murray director C/O SOFTBANK CAPITAL, 38 GLEN AVENUE, NEWTON MA 02459
William Zerella officer: CFO C/O FITBIT, INC., 405 HOWARD STREET, SAN FRANCISCO CA 94105
Jon Callaghan director C/O TRUE VENTURES, 530 LYTTON AVE, STE 303, PALO ALTO CA 94301
Edward M. Scal officer: CHIEF BUSINESS OFFICER C/O FITBIT, INC. 405 HOWARD STREET SAN FRANCISCO CA 94105
Timothy M. Roberts officer: EVP, INTERACTIVE C/O FITBIT, INC. 405 HOWARD STREET SAN FRANCISCO CA 94105