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TescoTSCDF +2.15%80 Earnings Yield (Joel Greenblatt) % is 7.62% as of Feb. 2026, which is 45% above its 10-year median of 5.25. GuruFocus rates TSCDF with a GF Score™ of 80/100 and a GF Value™ of $5.50 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 317 Retail - Defensive companies, Tesco ranks better than 60.88% on this metric.
Tesco's Enterprise Value for the quarter that ended in Feb. 2026 was $57,081 Mil.
Tesco's EBIT for the trailing twelve months (TTM) ended in Feb. 2026 was $4,271 Mil. Tesco's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2026 was 7.62%.
The historical rank and industry rank for Tesco's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
TSCDF'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -21.33 Med: 5.25 Max: 10.23
Current: 7.84
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Tesco was 10.23%. The lowest was -21.33%. And the median was 5.25%.
TSCDF's Earnings Yield (Joel Greenblatt) % is ranked better than 60.88% of 317
companies
in the Retail - Defensive industry
Industry Median: 6.33
vs TSCDF: 7.84
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) %. Tesco's Forward Rate of Return (Yacktman) % for the quarter that ended in Feb. 2026 was 21.64%. 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.
Tesco Earnings Yield (Joel Greenblatt) % Related Terms
Tesco Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Tesco'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.
TSCDF vs KR, SFM: Earnings Yield (Joel Greenblatt) % Comparison
For the Grocery Stores subindustry, Tesco'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.
Tesco Earnings Yield (Joel Greenblatt) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tesco'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.
Tescos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Feb. 2026 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 7.62% mean?
Tesco (TSCDF) has a Earnings Yield (Joel Greenblatt) % of 7.62% as of Feb. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Tesco and its competitors. This is 45% above median its historical median of 5.25. According to the industry distribution chart, Tesco ranks #124 out of 317 companies in the Retail - Defensive industry, placing it in the top 39.1%.
Is Tesco's Earnings Yield (Joel Greenblatt) % too high?
Tesco's current Earnings Yield (Joel Greenblatt) % of 7.62% is 45% above median its 10-year median of 5.25. The Retail - Defensive industry median Earnings Yield (Joel Greenblatt) % is 6.33. Tesco's value of 7.62% is 20.4% above this industry median. Based on the distribution chart, Tesco ranks #124 out of 317 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Tesco has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesco's Earnings Yield (Joel Greenblatt) % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Tesco ranks #124 out of 317 companies for Earnings Yield (Joel Greenblatt) %. This puts Tesco in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.33. Tesco's value of 7.62% is 20.4% above this benchmark. While the company's 10-year median is 5.25 vs. the industry median of 6.33, Tesco 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 Retail - Defensive company?
The median Earnings Yield (Joel Greenblatt) % among Retail - Defensive companies is 6.33, based on 317 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. Tesco's current Earnings Yield (Joel Greenblatt) % of 7.62% is 20.4% 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 Tesco and its competitors. For the Retail - Defensive industry, the median Earnings Yield (Joel Greenblatt) % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current Earnings Yield (Joel Greenblatt) % is 7.62%, which is 45% above median its own 10-year median of 5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (TSCDF) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.50, compared to a current price of $6.47 — trading 17.6% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 7.62%, which is 45% above median its 10-year median of 5.25 and 20.4% above the Retail - Defensive industry median of 6.33. Tesco's overall GF Score™ is 80/100 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 Tesco (TSCDF), the current Earnings Yield (Joel Greenblatt) % is 7.62% as of Feb. 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 Tesco (TSCDF) Overvalued in 2026?
Based on GuruFocus' analysis, Tesco stock appears to be overvalued.
The current stock price of $6.47 is trading 17.6% above its estimated GF Value™ of $5.50.
GuruFocus considers Tesco to be Modestly Overvalued.
Key valuation signals for TSCDF:
Earnings Yield (Joel Greenblatt) %: 7.62% (45% above median its 10-year median of 5.25)
GF Value™: $5.50 vs. price of $6.47 (17.6% above fair value)
Industry Position: 20.4% above the Retail - Defensive median (#124 of 317)
No single metric tells the full story. See the TSCDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
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