/term/earning-yield-greenblatt/CSCO CSCO (Cisco Systems) Earnings Yield (Joel Greenblatt) %
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Cisco Systems (Cisco Systems) Earnings Yield (Joel Greenblatt) % : 7.41% (As of Apr. 2024)


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What is Cisco Systems Earnings Yield (Joel Greenblatt) %?

Cisco Systems's Enterprise Value for the quarter that ended in Apr. 2024 was $202,599 Mil. Cisco Systems's EBIT for the trailing twelve months (TTM) ended in Apr. 2024 was $15,008 Mil. Cisco Systems's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2024 was 7.41%.

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

CSCO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.74   Med: 8.72   Max: 16.09
Current: 7.56

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Cisco Systems was 16.09%. The lowest was 5.74%. And the median was 8.72%.

CSCO's Earnings Yield (Joel Greenblatt) % is ranked better than
72.97% of 2486 companies
in the Hardware industry
Industry Median: 3.09 vs CSCO: 7.56

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) %. Cisco Systems's Forward Rate of Return (Yacktman) % for the quarter that ended in Apr. 2024 was 10.02%. 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.


Cisco Systems Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Cisco Systems'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.

Cisco Systems Earnings Yield (Joel Greenblatt) % Chart

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.81 7.88 6.21 8.40 8.12

Cisco Systems Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 8.26 8.12 8.57 8.71 7.41

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

For the Communication Equipment subindustry, Cisco Systems'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.


Cisco Systems's Earnings Yield (Joel Greenblatt) % Distribution in the Hardware Industry

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

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



Cisco Systems 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.

Cisco Systemss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jul. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=15745/193839.64
=8.12 %

Cisco Systems's EBIT for the trailing twelve months (TTM) ended in Apr. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $15,008 Mil.



Cisco Systems  (NAS:CSCO) 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.


Cisco Systems Earnings Yield (Joel Greenblatt) % Related Terms

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Cisco Systems (Cisco Systems) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Cisco Systems Inc (NAS:CSCO) » Definitions » Earnings Yield (Joel Greenblatt) %
Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.
Executives
Richard Scott Herren officer: EVP and CFO 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Maria Victoria Wong officer: SVP & Chief Acctg Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Deborah L Stahlkopf officer: EVP and Chief Legal Officer C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Jeffery S. Sharritts officer: EVP & Chief Cust & Prtnr Offcr 1200 ABERNATHY RD., NE, STE 1200, ATLANTA GA 30328
Mark Garrett director 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715
Maria Martinez officer: EVP, Chief Customer Exp Offcr THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Charles Robbins officer: SVP, Worldwide Sales 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Daniel H Schulman director C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Roderick C Mcgeary director 1421 MCCRTHY BLVD, MILPITAS CA 95035
Prat Bhatt officer: VP, Corporate Controller & PAO 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Kristina M Johnson director 19 HEATH PL, DURHAM NC 27705
Sarah Rae Murphy director C/O CISCO SYSTEMS, INC., 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Geraldine Elliott officer: EVP, Chief Sales & Mktg Offcr 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
M Michele Burns director C/O MARSH &MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036-2774
Mark D Chandler officer: SVP, LglSrvs, GenCnsl & Secty 170 W TASMAN DRIVE, SAN JOSE CA 95134

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