Explanation
This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the
Operating Income.
Joel Greenblatt calls the inversion of this ratio
Earnings Yield (Joel Greenblatt).
Related Terms
Operating Income,
Enterprise Value,
Earnings Yield (Joel Greenblatt)* All numbers are in millions except for per share dataAres Commercial Real Estate Corp Annual Data
Ares Commercial Real Estate Corp Quarterly Data
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