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Education Management's Enterprise Value for the quarter that ended in Jun. 2014 was $1,446 Mil.
Education Management's EBIT for the trailing twelve months (TTM) ended in Jun. 2014 was $79 Mil. Education Management's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was -33.78%.
The historical rank and industry rank for Education Management's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
EDMCQ's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Education industry.
Industry Median: 6.48 * Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.
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) %. Education Management's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2014 was 34.32%. 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.
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.
Education Management Earnings Yield (Joel Greenblatt) % Related Terms
Education Management Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Education Management'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.
EDMCQ vs ZVO: Earnings Yield (Joel Greenblatt) % Comparison
For the Education & Training Services subindustry, Education Management'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.
Education Management Earnings Yield (Joel Greenblatt) % vs Education Industry
For the Education industry and Consumer Defensive sector, Education Management's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Education Management's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Education Managements Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jun. 2014 is calculated as
Education Management's EBIT for the trailing twelve months (TTM) ended in Jun. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was $79 Mil.
What does a Earnings Yield (Joel Greenblatt) % of -33.78% mean?
Education Management (EDMCQ) has a Earnings Yield (Joel Greenblatt) % of -33.78% as of Jun. 2014. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Education Management and its competitors.
Is Education Management's Earnings Yield (Joel Greenblatt) % too high?
Education Management's current Earnings Yield (Joel Greenblatt) % is -33.78%.
How does Education Management's Earnings Yield (Joel Greenblatt) % compare to ZVO?
Education Management's Earnings Yield (Joel Greenblatt) % of -33.78% can be compared against companies in the Education industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.48. 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 an Education company?
The median Earnings Yield (Joel Greenblatt) % among Education companies is 6.48, based on 264 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. 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 Education Management and its competitors. For the Education industry, the median Earnings Yield (Joel Greenblatt) % is 6.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Education Management's current Earnings Yield (Joel Greenblatt) % is -33.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Education Management stock overvalued right now?
Education Management (EDMCQ) has a current Earnings Yield (Joel Greenblatt) % of -33.78%. The current Earnings Yield (Joel Greenblatt) % is -33.78%. 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 Education Management (EDMCQ), the current Earnings Yield (Joel Greenblatt) % is -33.78% as of Jun. 2014. 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.
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.
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