ReadSoft AB (LTS:0GQO) Earnings Yield (Joel Greenblatt) % : 1.63% (As of Jun. 2014)

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What is ReadSoft AB Earnings Yield (Joel Greenblatt) %?

ReadSoft AB's Enterprise Value for the quarter that ended in Jun. 2014 was kr1,283.6 Mil. ReadSoft AB's EBIT for the trailing twelve months (TTM) ended in Jun. 2014 was kr20.9 Mil. ReadSoft AB's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 1.63%.

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

LTS:0GQO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.3 Med: 10.6 Max: 23.6
Current: 1.3

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of ReadSoft AB was 23.60%. The lowest was 1.30%. And the median was 10.60%.

LTS:0GQO's Earnings Yield (Joel Greenblatt) % is not ranked
in the Software industry.
Industry Median: 1.4 vs LTS:0GQO: 1.30

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) %. ReadSoft AB's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2014 was 11.31%. 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.

ReadSoft AB Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for ReadSoft AB'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.

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ReadSoft AB Earnings Yield (Joel Greenblatt) % Chart

ReadSoft AB Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Earnings Yield (Joel Greenblatt) %

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2.74

13.61

22.57

10.41

1.97

ReadSoft AB Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Earnings Yield (Joel Greenblatt) %	Get a 7-Day Free Trial															5.90	4.42	1.97	3.50	1.63

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

For the Software - Application subindustry, ReadSoft AB'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.

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

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

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

ReadSoft AB 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.

ReadSoft ABs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2013 is calculated as

Earnings Yield (Joel Greenblatt)	=	EBIT	/	Enterprise Value
	=	12.93	/	0
	=	%

ReadSoft AB'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 kr20.9 Mil.

ReadSoft AB (LTS:0GQO) 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

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.

ReadSoft AB Earnings Yield (Joel Greenblatt) % Related Terms

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ReadSoft AB (LTS:0GQO) Business Description

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ReadSoft AB is a Sweden-based company that creates and markets software and services for document automation, processes such as data entry, information verification, document workflows, and e-voicing. The company operates in over 16 countries worldwide, with partnerships in an additional 70. The company offers solutions primarily for industries such as banking, manufacturing, service bureaus, market research, insurance, government, and medical. Major customers include IKEA, Audi, Porsche, Yves Rocher, Swedish Tax, DaimlerChrysler, HSBS Bank, Avon, Bosch, London Underground, New York Transit, Toyota, Volvo, Monoprix, Ericsson, and ING. The company is headquartered in Helsingborg, Sweden. The company offers ReadSoft DOCUMENTS, a complete software platform for document automation. The product incorporates five Automation Areas: Capture, capturing the information in any format and making it ready for electronic processing; Understand, enabling the computer to read, sort, interpret, extract, and index documents electronically; Manage, providing customers with control of electronic documents, including the verification and quality control with archiving and monitoring capabilities; Integrate, integration with the business software; and Interchange, Electronic Data Interchange. Capabilities within each Automation Area are customized to the needs of the customer, and solutions can be expanded to include any required extra capabilities. Also, this software can be integrated with systems such as SAP and Oracle E-Business Suite, Intentia, and IFS. ReadSoft business solutions for specific areas include: ReadSoft Documents for Mailrooms, Documents for EDI, Documents for Invoices, and Documents for Forms. Additionally, the company offers Professional Services such as project management and customization, Solution Optimization, Training, and Technical Support.

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