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Lamb Weston HoldingsLW +1.51%88 Earnings Yield (Joel Greenblatt) % is 6.02% as of May. 2026, which is 19% above its 10-year median of 5.07. GuruFocus rates LW with a GF Score™ of 88/100 and a GF Value™ of $65.39 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,027 Consumer Packaged Goods companies, Lamb Weston Holdings ranks worse than 53.92% on this metric.
Lamb Weston Holdings's Enterprise Value for the quarter that ended in May. 2026 was $9,810 Mil.
Lamb Weston Holdings's EBIT for the trailing twelve months (TTM) ended in May. 2026 was $591 Mil. Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2026 was 6.02%.
The historical rank and industry rank for Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LW'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.77 Med: 5.07 Max: 8.87
Current: 5.32
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Lamb Weston Holdings was 8.87%. The lowest was 2.77%. And the median was 5.07%.
LW's Earnings Yield (Joel Greenblatt) % is ranked worse than 53.92% of 2027
companies
in the Consumer Packaged Goods industry
Industry Median: 5.95
vs LW: 5.32
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) %. Lamb Weston Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2026 was 17.44%. 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.
Lamb Weston Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Lamb Weston Holdings Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Lamb Weston Holdings'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.
For the Packaged Foods subindustry, Lamb Weston Holdings'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.
Lamb Weston Holdings Earnings Yield (Joel Greenblatt) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings'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.
Lamb Weston Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2026 is calculated as
Lamb Weston Holdings's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $591 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 6.02% mean?
Lamb Weston Holdings (LW) has a Earnings Yield (Joel Greenblatt) % of 6.02% as of May. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Lamb Weston Holdings and its competitors. This is 19% above median its historical median of 5.07. Over the past decade, Lamb Weston Holdings' Earnings Yield (Joel Greenblatt) % has ranged from 2.77 to 8.87. According to the industry distribution chart, Lamb Weston Holdings ranks #1093 out of 2027 companies in the Consumer Packaged Goods industry, placing it in the top 53.9%.
Is Lamb Weston Holdings' Earnings Yield (Joel Greenblatt) % too high?
Lamb Weston Holdings' current Earnings Yield (Joel Greenblatt) % of 6.02% is 19% above median its 10-year median of 5.07. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 8.87. The Consumer Packaged Goods industry median Earnings Yield (Joel Greenblatt) % is 5.95. Lamb Weston Holdings' value of 6.02% is 1.2% above this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #1093 out of 2027 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Lamb Weston Holdings has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Earnings Yield (Joel Greenblatt) % compare to PPC and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #1093 out of 2027 companies for Earnings Yield (Joel Greenblatt) %. This places Lamb Weston Holdings in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 5.95. Lamb Weston Holdings' value of 6.02% is 1.2% above this benchmark. Historically, Lamb Weston Holdings' own Earnings Yield (Joel Greenblatt) % has ranged from 2.77 to 8.87 over the past decade. While the company's 10-year median is 5.07 vs. the industry median of 5.95, Lamb Weston Holdings 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 Consumer Packaged Goods company?
The median Earnings Yield (Joel Greenblatt) % among Consumer Packaged Goods companies is 5.95, based on 2,027 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. Lamb Weston Holdings's current Earnings Yield (Joel Greenblatt) % of 6.02% is 1.2% 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 Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Earnings Yield (Joel Greenblatt) % is 5.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Earnings Yield (Joel Greenblatt) % is 6.02%, which is 19% above median its own 10-year median of 5.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lamb Weston Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lamb Weston Holdings (LW) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.39, compared to a current price of $52.59 — trading 19.6% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.02%, which is 19% above median its 10-year median of 5.07 and 1.2% above the Consumer Packaged Goods industry median of 5.95. Lamb Weston Holdings' overall GF Score™ is 88/100 with 5 warning signs 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 Lamb Weston Holdings (LW), the current Earnings Yield (Joel Greenblatt) % is 6.02% as of May. 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 Lamb Weston Holdings (LW) Overvalued in 2026?
Based on GuruFocus' analysis, Lamb Weston Holdings stock appears to be undervalued.
The current stock price of $52.59 is trading 19.6% below its estimated GF Value™ of $65.39.
GuruFocus considers Lamb Weston Holdings to be Modestly Undervalued.
Key valuation signals for LW:
Earnings Yield (Joel Greenblatt) %: 6.02% (19% above median its 10-year median of 5.07)
GF Value™: $65.39 vs. price of $52.59 (19.6% below fair value)
Industry Position: 1.2% above the Consumer Packaged Goods median (#1093 of 2027)
No single metric tells the full story. See the LW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by french fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Roughly two thirds of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single-largest customer at 15% of fiscal 2025 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
88GF Score
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