What is Validus Holdings Earnings Yield (Joel Greenblatt) %?
Validus Holdings's Enterprise Value for the quarter that ended in Jun. 2018 was $7,406 Mil.
Validus Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2018 was $-592 Mil. Validus Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2018 was -15.50%.
The historical rank and industry rank for Validus Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
VR's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Insurance industry.
Industry Median: 5.58 * 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) %. Validus Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2018 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.
Validus Holdings Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Validus Holdings'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.
Competitive Comparison of Validus Holdings's Earnings Yield (Joel Greenblatt) %
For the Insurance - Reinsurance subindustry, Validus Holdings'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.
Validus Holdings's Earnings Yield (Joel Greenblatt) % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Validus Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Validus Holdings's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Validus Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2017 is calculated as
Validus Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $-592 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.
Validus Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Validus Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Validus Holdings (Validus Holdings) Business Description
Validus Holdings Ltd is a holding company for reinsurance and insurance operating companies and investment advisors. The company includes Validus Reinsurance, Talbot Underwriting, Western World Insurance Group, and AlphaCat Managers. Validus Reinsurance is a Bermuda-based reinsurer focused on treaty reinsurance. Talbot is a specialty insurance group that mainly operates in the Lloyd's insurance market. Western World Insurance Group is a U.S. specialty lines insurance company that specialises in excess and surplus lines. AlphaCat Managers provides investment and capital-management advice for third parties and Validus insurance-linked securities, as well as other property-catastrophe and specialty reinsurance investments.
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