ALAB (Astera Labs) Earnings Yield (Joel Greenblatt) % : -1.44% (As of Sep. 2024)

Astera Labs Earnings Yield (Joel Greenblatt) % Chart

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

For the Semiconductors subindustry, Astera Labs'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.

Astera Labs's Earnings Yield (Joel Greenblatt) % Distribution in the Semiconductors Industry

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

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

Astera Labs 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.

Astera Labss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Astera Labs's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-107.2 Mil.

Astera Labs  (NAS:ALAB) 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.

Astera Labs Earnings Yield (Joel Greenblatt) % Related Terms

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Astera Labs Business Description