Roche Holding AG (Roche Holding AG) Earnings Yield (Joel Greenblatt) %

: 6.88% (As of Dec. 2023)

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Roche Holding AG's Enterprise Value for the quarter that ended in Dec. 2023 was $259,079 Mil. Roche Holding AG's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $16,991 Mil. Roche Holding AG's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 6.88%.

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

RHHBY' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.87 Med: 6.15 Max: 8.02
Current: 7.79

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Roche Holding AG was 8.02%. The lowest was 4.87%. And the median was 6.15%.

RHHBY's Earnings Yield (Joel Greenblatt) % is ranked better than
78.77% of 1093 companies
in the Drug Manufacturers industry
Industry Median: 2.54 vs RHHBY: 7.79

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) %. Roche Holding AG's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 8.05%. 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.

Roche Holding AG Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Roche Holding AG'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.

Roche Holding AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Earnings Yield (Joel Greenblatt) %

6.32

6.85

5.45

6.72

6.88

Roche Holding AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Earnings Yield (Joel Greenblatt) %																5.45	-	6.72	-	6.88

Competitive Comparison

For the Drug Manufacturers - General subindustry, Roche Holding AG'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.

Roche Holding AG Earnings Yield (Joel Greenblatt) % Distribution

For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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

Roche Holding AG 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.

Roche Holding AGs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)	=	EBIT	/	Enterprise Value
	=	17432.932	/	259079.2412
	=	6.73 %

For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.

Roche Holding AG (OTCPK:RHHBY) 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

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.

Roche Holding AG Earnings Yield (Joel Greenblatt) % Related Terms

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Roche Holding AG (Roche Holding AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Roche Holding AG (OTCPK:RHHBY) » Definitions » Earnings Yield (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

RHHVF:USA RHHBF:USA ROG N:Mexico ROz:UK ROGz:UK 0QOK:UK RHO6:Germany ROG:Switzerland RO:Switzerland

Address

Grenzacherstrasse 124, Basel, CHE, 4070

Website

https://www.roche.com

Roche is a Swiss biopharmaceutical and diagnostic company. The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 50% of pharmaceutical sales, and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.