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Allocate SoftwareLSE:ALLA Earnings Yield (Joel Greenblatt) % is 4.83% as of May. 2014, which is 31% above its 10-year median of 3.70. The stock has 1 warning sign investors should review.
Allocate Software's Enterprise Value for the quarter that ended in May. 2014 was £0.00 Mil.
Allocate Software's EBIT for the trailing twelve months (TTM) ended in May. 2014 was £2.92 Mil. Allocate Software's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 was 4.83%.
The historical rank and industry rank for Allocate Software's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LSE:ALLA'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.9 Med: 3.7 Max: 13.3
Current: 3.1
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Allocate Software was 13.30%. The lowest was 1.90%. And the median was 3.70%.
LSE:ALLA's Earnings Yield (Joel Greenblatt) % is not ranked
in the Software industry.
Industry Median: 1.93
vs LSE:ALLA: 3.10
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) %. Allocate Software's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2014 was 9.66%. 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.
Allocate Software Earnings Yield (Joel Greenblatt) % Related Terms
Allocate Software Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Allocate Software'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.
LSE:ALLA vs SREV, ASUR: Earnings Yield (Joel Greenblatt) % Comparison
For the Software - Application subindustry, Allocate Software'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.
Allocate Software Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Allocate Software's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Allocate Software'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.
Allocate Softwares Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2014 is calculated as
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 4.83% mean?
Allocate Software (LSE:ALLA) has a Earnings Yield (Joel Greenblatt) % of 4.83% as of May. 2014. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Allocate Software and its competitors. This is 31% above median its historical median of 3.70. Over the past decade, Allocate Software's Earnings Yield (Joel Greenblatt) % has ranged from 1.90 to 13.30.
Is Allocate Software's Earnings Yield (Joel Greenblatt) % too high?
Allocate Software's current Earnings Yield (Joel Greenblatt) % of 4.83% is 31% above median its 10-year median of 3.70. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 13.30. The Software industry median Earnings Yield (Joel Greenblatt) % is 1.93. Allocate Software's value of 4.83% is 150.3% above this industry median.
How does Allocate Software's Earnings Yield (Joel Greenblatt) % compare to SREV and ASUR?
Allocate Software's Earnings Yield (Joel Greenblatt) % of 4.83% can be compared against companies in the Software industry. The industry median Earnings Yield (Joel Greenblatt) % is 1.93. Allocate Software's value of 4.83% is 150.3% above this benchmark. Historically, Allocate Software's own Earnings Yield (Joel Greenblatt) % has ranged from 1.90 to 13.30 over the past decade. While the company's 10-year median is 3.70 vs. the industry median of 1.93, Allocate Software 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 Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 1.93, based on 2,910 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. Allocate Software's current Earnings Yield (Joel Greenblatt) % of 4.83% is 150.3% 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 Allocate Software and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current Earnings Yield (Joel Greenblatt) % is 4.83%, which is 31% above median its own 10-year median of 3.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Earnings Yield (Joel Greenblatt) % of 4.83%. The current Earnings Yield (Joel Greenblatt) % is 4.83%, which is 31% above median its 10-year median of 3.70 and 150.3% above the Software industry median of 1.93. 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 Allocate Software (LSE:ALLA), the current Earnings Yield (Joel Greenblatt) % is 4.83% as of May. 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.
Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.
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