AO World (CHIX:AOL) Earnings Yield (Joel Greenblatt) %: 11.60% (As of Mar. 2026) — 3312% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CHIX:AOL AO World PLC CHIX:AOL
73 GF Score
Price £0.96
GF Value £1.15
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is AO World Earnings Yield (Joel Greenblatt) %?

AO World CHIX:AOL -2.48% 73 Earnings Yield (Joel Greenblatt) % is 11.60% as of Mar. 2026, which is 3312% above its 10-year median of 0.34. GuruFocus rates CHIX:AOL with a GF Score™ of 73/100 and a GF Value™ of £1.15 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,130 Retail - Cyclical companies, AO World ranks better than 74.69% on this metric.

AO World's Enterprise Value for the quarter that ended in Mar. 2026 was £464 Mil. AO World's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was £54 Mil. AO World's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 11.60%.

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

CHIX:AOl' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.53   Med: 0.34   Max: 11.14
Current: 10.18

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of AO World was 11.14%. The lowest was -4.53%. And the median was 0.34%.

CHIX:AOl's Earnings Yield (Joel Greenblatt) % is ranked better than
74.69% of 1130 companies
in the Retail - Cyclical industry
Industry Median: 5.525 vs CHIX:AOl: 10.18

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) %. AO World's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 20.36%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five 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.


AO World  (CHIX:AOl) 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.


AO World Earnings Yield (Joel Greenblatt) % Related Terms


AO World Earnings Yield (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for AO World'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.

AO World Earnings Yield (Joel Greenblatt) % Chart

AO World Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.02 3.15 6.36 4.16 11.60

AO World Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 6.36 0.00 4.16 0.00 11.60

CHIX:AOL vs CASY, WSM, ULTA: Earnings Yield (Joel Greenblatt) % Comparison

For the Specialty Retail subindustry, AO World'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.


AO World Earnings Yield (Joel Greenblatt) % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, AO World's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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


CHIX:AOL
73GF Score
AO World PLC CHIX:AOL
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

AO World 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.

AO Worlds Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=54.3/464.123385
=11.70 %

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.


What does a Earnings Yield (Joel Greenblatt) % of 11.60% mean?
AO World (CHIX:AOL) has a Earnings Yield (Joel Greenblatt) % of 11.60% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on AO World and its competitors. This is 3312% above median its historical median of 0.34. According to the industry distribution chart, AO World ranks #286 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 25.3%.
Is AO World's Earnings Yield (Joel Greenblatt) % too high?
AO World's current Earnings Yield (Joel Greenblatt) % of 11.60% is 3312% above median its 10-year median of 0.34. The Retail - Cyclical industry median Earnings Yield (Joel Greenblatt) % is 5.53. AO World's value of 11.60% is 110% above this industry median. Based on the distribution chart, AO World ranks #286 out of 1130 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, AO World has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AO World's Earnings Yield (Joel Greenblatt) % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, AO World ranks #286 out of 1130 companies for Earnings Yield (Joel Greenblatt) %. This puts AO World in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 5.53. AO World's value of 11.60% is 110% above this benchmark. While the company's 10-year median is 0.34 vs. the industry median of 5.53, AO World has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Retail - Cyclical company?
The median Earnings Yield (Joel Greenblatt) % among Retail - Cyclical companies is 5.53, based on 1,130 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AO World's current Earnings Yield (Joel Greenblatt) % of 11.60% is 110% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on AO World and its competitors. For the Retail - Cyclical industry, the median Earnings Yield (Joel Greenblatt) % is 5.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AO World's current Earnings Yield (Joel Greenblatt) % is 11.60%, which is 3312% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AO World stock overvalued right now?
Based on GuruFocus' analysis, AO World (CHIX:AOL) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.15, compared to a current price of £0.96 — trading 16.1% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 11.60%, which is 3312% above median its 10-year median of 0.34 and 110% above the Retail - Cyclical industry median of 5.53. AO World's overall GF Score™ is 73/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For AO World (CHIX:AOL), the current Earnings Yield (Joel Greenblatt) % is 11.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is AO World (CHIX:AOL) Overvalued in 2026?

Based on GuruFocus' analysis, AO World stock appears to be undervalued. The current stock price of £0.96 is trading 16.1% below its estimated GF Value™ of £1.15. GuruFocus considers AO World to be Modestly Undervalued.

Key valuation signals for CHIX:AOL:

  • Earnings Yield (Joel Greenblatt) %: 11.60% (3312% above median its 10-year median of 0.34)
  • GF Value™: £1.15 vs. price of £0.96 (16.1% below fair value)
  • GF Score™: 73/100 with 1 warning sign
  • Industry Position: 110% above the Retail - Cyclical median (#286 of 1130)

No single metric tells the full story. See the CHIX:AOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AO World Business Description

Other Exchanges AO.:UK81A:Germany
Address 5A The Parklands, AO Park, Lostock, Bolton, GBR, BL6 4SD
AO World PLC is a European retailer that specializes in electrical products. The company's primary markets include essential domestic appliances, small domestic appliances, and audiovisual equipment. Within the domestic appliances category, AO collaborates with suppliers such as Fisher & Paykel, Daewoo, and Amica. The small domestic appliances segment encompasses a variety of appliances including food preparation appliances, kitchen appliances, and floorcare devices. Additionally, the company offers ancillary services to customers in the UK. AO's main geographical markets are the UK, Germany, and the Netherlands.
73GF Score

Get the complete analysis for CHIX:AOL

Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.96
Price
£1.15
GF Value