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DocuSign (BSP:D1OC34) Earnings Yield (Joel Greenblatt) % : 1.61% (As of Oct. 2024)


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What is DocuSign Earnings Yield (Joel Greenblatt) %?

DocuSign's Enterprise Value for the quarter that ended in Oct. 2024 was R$76,797 Mil. DocuSign's EBIT for the trailing twelve months (TTM) ended in Oct. 2024 was R$1,150 Mil. DocuSign's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2024 was 1.61%.

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

BSP:D1OC34' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -24.33   Med: -0.51   Max: 1.79
Current: 1.11

During the past 9 years, the highest Earnings Yield (Joel Greenblatt) of DocuSign was 1.79%. The lowest was -24.33%. And the median was -0.51%.

BSP:D1OC34's Earnings Yield (Joel Greenblatt) % is ranked worse than
51.53% of 2851 companies
in the Software industry
Industry Median: 1.34 vs BSP:D1OC34: 1.11

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) %. DocuSign's Forward Rate of Return (Yacktman) % for the quarter that ended in Oct. 2024 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.


DocuSign Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for DocuSign'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.

DocuSign Earnings Yield (Joel Greenblatt) % Chart

DocuSign Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only -1.24 -0.44 -0.24 -0.69 0.87

DocuSign Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.02 0.87 1.22 1.71 1.61

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

For the Software - Application subindustry, DocuSign'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.


DocuSign's Earnings Yield (Joel Greenblatt) % Distribution in the Software Industry

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

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



DocuSign 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.

DocuSigns Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=494.392/58596.854
=0.84 %

DocuSign's EBIT for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R$1,150 Mil.



DocuSign  (BSP:D1OC34) 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.


DocuSign Earnings Yield (Joel Greenblatt) % Related Terms

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DocuSign Business Description

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Address
221 Main Street, Suite 1550, San Francisco, CA, USA, 94105
Docusign offers Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its initial public offering in May 2018.

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