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TLN (Talen Energy) Earnings Yield (Joel Greenblatt) % : 11.30% (As of Dec. 2024)


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What is Talen Energy Earnings Yield (Joel Greenblatt) %?

Talen Energy's Enterprise Value for the quarter that ended in Dec. 2024 was $11,936 Mil. Talen Energy's EBIT for the trailing twelve months (TTM) ended in Dec. 2024 was $902 Mil. Talen Energy's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2024 was 11.30%.

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

TLN' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.43   Med: 6.49   Max: 17.89
Current: 6.9

During the past 8 years, the highest Earnings Yield (Joel Greenblatt) of Talen Energy was 17.89%. The lowest was 2.43%. And the median was 6.49%.

TLN's Earnings Yield (Joel Greenblatt) % is ranked better than
66.08% of 454 companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.695 vs TLN: 6.90

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) %. Talen Energy's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2024 was 0.00%. 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.


Talen Energy Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Talen Energy'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.

* Premium members only.

Talen Energy Earnings Yield (Joel Greenblatt) % Chart

Talen Energy Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec22 Dec23 Dec24
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial - - - - 11.30

Talen Energy Quarterly Data
Dec12 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Sep23 Dec23 Jun24 Sep24 Dec24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.77 - 7.63 7.90 11.30

Competitive Comparison of Talen Energy's Earnings Yield (Joel Greenblatt) %

For the Utilities - Independent Power Producers subindustry, Talen Energy'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.


Talen Energy's Earnings Yield (Joel Greenblatt) % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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


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Talen Energy 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.

Talen Energys Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1349/11935.96414
=11.30 %

Talen Energy's EBIT for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $902 Mil.



Talen Energy  (NAS:TLN) 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

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.

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


Talen Energy Earnings Yield (Joel Greenblatt) % Related Terms

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Talen Energy Business Description

Traded in Other Exchanges
N/A
Address
2929 Allen Parkway, Suite 2200, Houston, TX, USA, 77019
Talen Energy Corp is an independent power producer and energy infrastructure company. The company owns and operates approximately 10.7 gigawatts of power infrastructure in the United States. The group produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, including PJM and WECC, with its generation fleet located in the Mid-Atlantic and Montana.