What is King Digital Entertainment Earnings Yield (Joel Greenblatt) %?
King Digital Entertainment's Enterprise Value for the quarter that ended in Dec. 2015 was $4,542 Mil.
King Digital Entertainment's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 was $655 Mil. King Digital Entertainment's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2015 was 14.41%.
The historical rank and industry rank for King Digital Entertainment's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
KING's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Interactive Media industry.
Industry Median: 0 * 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) %. King Digital Entertainment's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2015 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.
King Digital Entertainment Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for King Digital Entertainment'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.
King Digital Entertainment Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of King Digital Entertainment's Earnings Yield (Joel Greenblatt) %
For the Electronic Gaming & Multimedia subindustry, King Digital Entertainment'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.
King Digital Entertainment's Earnings Yield (Joel Greenblatt) % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, King Digital Entertainment's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where King Digital Entertainment's Earnings Yield (Joel Greenblatt) % falls into.
King Digital Entertainment 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.
King Digital Entertainments Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2015 is calculated as
King Digital Entertainment's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $655 Mil.
King Digital Entertainment (NYSE:KING) 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.
King Digital Entertainment Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of King Digital Entertainment's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
King Digital Entertainment (King Digital Entertainment) Business Description
King Digital Entertainment PLC was originally incorporated as Midasplayer.com Limited in September 2002, a company organized under the laws of England and Wales. It is an interactive entertainment company for the mobile world. The Company provides engaging content to its audience to match mobile lifestyles: anywhere, anytime and on any device. Its games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga. The Company makes its games available for free, while players can purchase virtual items priced relative to the entertainment value they provide. It embeds social features in the content that enhances the player experience. The Company develops and publishes casual games on royalgames.com, its tournament portal and on mobile and social platform. Casual games typically include a puzzle element. The Company's competitors include other game developers and emerging and potential game developers.
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