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Northrop GrummanNOC +0.68%85 Earnings Yield (Joel Greenblatt) % is 6.86% as of Jun. 2026, which is 4% above its 10-year median of 6.61. GuruFocus rates NOC with a GF Scoreâ„¢ of 85/100 and a GF Valueâ„¢ of $560.94 (Fairly Valued). The stock has 2 warning signs investors should review. Among 362 Aerospace & Defense companies, Northrop Grumman ranks better than 84.81% on this metric.
Northrop Grumman's Enterprise Value for the quarter that ended in Jun. 2026 was $86,336 Mil.
Northrop Grumman's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $5,920 Mil. Northrop Grumman's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 6.86%.
The historical rank and industry rank for Northrop Grumman's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
NOC'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.4 Med: 6.61 Max: 13.69
Current: 6.22
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Northrop Grumman was 13.69%. The lowest was 3.40%. And the median was 6.61%.
NOC's Earnings Yield (Joel Greenblatt) % is ranked better than 84.81% of 362
companies
in the Aerospace & Defense industry
Industry Median: 2.12
vs NOC: 6.22
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) %. Northrop Grumman's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was -0.24%. 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.
Northrop Grumman Earnings Yield (Joel Greenblatt) % Related Terms
Northrop Grumman Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Northrop Grumman'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 Aerospace & Defense subindustry, Northrop Grumman'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.
Northrop Grumman Earnings Yield (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman'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.
Northrop Grummans Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Northrop Grumman's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $5,920 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 6.86% mean?
Northrop Grumman (NOC) has a Earnings Yield (Joel Greenblatt) % of 6.86% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Northrop Grumman and its competitors. This is near median its historical median of 6.61. Over the past decade, Northrop Grumman's Earnings Yield (Joel Greenblatt) % has ranged from 3.40 to 13.69. According to the industry distribution chart, Northrop Grumman ranks #55 out of 362 companies in the Aerospace & Defense industry, placing it in the top 15.2%.
Is Northrop Grumman's Earnings Yield (Joel Greenblatt) % too high?
Northrop Grumman's current Earnings Yield (Joel Greenblatt) % of 6.86% is near median its 10-year median of 6.61. Over the past 10 years, this metric has ranged from a low of 3.40 to a high of 13.69. The Aerospace & Defense industry median Earnings Yield (Joel Greenblatt) % is 2.12. Northrop Grumman's value of 6.86% is 223.6% above this industry median. Based on the distribution chart, Northrop Grumman ranks #55 out of 362 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Northrop Grumman has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Earnings Yield (Joel Greenblatt) % compare to TDG and HONA?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #55 out of 362 companies for Earnings Yield (Joel Greenblatt) %. This places Northrop Grumman in the top 15% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 2.12. Northrop Grumman's value of 6.86% is 223.6% above this benchmark. Historically, Northrop Grumman's own Earnings Yield (Joel Greenblatt) % has ranged from 3.40 to 13.69 over the past decade. While the company's 10-year median is 6.61 vs. the industry median of 2.12, Northrop Grumman 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 an Aerospace & Defense company?
The median Earnings Yield (Joel Greenblatt) % among Aerospace & Defense companies is 2.12, based on 362 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. Northrop Grumman's current Earnings Yield (Joel Greenblatt) % of 6.86% is 223.6% 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 Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median Earnings Yield (Joel Greenblatt) % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current Earnings Yield (Joel Greenblatt) % is 6.86%, which is near median its own 10-year median of 6.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northrop Grumman stock overvalued right now?
Based on GuruFocus' analysis, Northrop Grumman (NOC) is currently considered Fairly Valued. The stock's GF Value™ is $560.94, compared to a current price of $571.58 — trading 1.9% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.86%, which is near median its 10-year median of 6.61 and 223.6% above the Aerospace & Defense industry median of 2.12. Northrop Grumman's overall GF Score™ is 85/100 with 2 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 Northrop Grumman (NOC), the current Earnings Yield (Joel Greenblatt) % is 6.86% as of Jun. 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 Northrop Grumman (NOC) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be overvalued.
The current stock price of $571.58 is trading 1.9% above its estimated GF Value™ of $560.94.
GuruFocus considers Northrop Grumman to be Fairly Valued.
Key valuation signals for NOC:
Earnings Yield (Joel Greenblatt) %: 6.86% (near median its 10-year median of 6.61)
GF Value™: $560.94 vs. price of $571.58 (1.9% above fair value)
Industry Position: 223.6% above the Aerospace & Defense median (#55 of 362)
No single metric tells the full story. See the NOC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems. The company's aerospace segment produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber, creates the fuselage for the massive F-35 program, and maintains and upgrades numerous other military aircraft. Defense systems makes artillery and missile ammunition and guidance systems, long-range missiles, and missile defense systems. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Space systems produces satellites, sensors, space structures, and rocket motors.
85GF Score
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