Zai LabZLAB -0.21%64 Earnings Yield (Joel Greenblatt) % is -10.48% as of Mar. 2026. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.27 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,340 Biotechnology companies, Zai Lab ranks worse than 51.72% on this metric.
Zai Lab's Enterprise Value for the quarter that ended in Mar. 2026 was $1,658.9 Mil.
Zai Lab's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $-173.9 Mil. Zai Lab's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was -10.48%.
The historical rank and industry rank for Zai Lab's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ZLAB'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -48.04 Med: -9.9 Max: -1.81
Current: -10.06
During the past 11 years, the highest Earnings Yield (Joel Greenblatt) of Zai Lab was -1.81%. The lowest was -48.04%. And the median was -9.90%.
ZLAB's Earnings Yield (Joel Greenblatt) % is ranked worse than 51.72% of 1340
companies
in the Biotechnology industry
Industry Median: -9.725
vs ZLAB: -10.06
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) %. Zai Lab's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 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.
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.
Zai Lab Earnings Yield (Joel Greenblatt) % Related Terms
Zai Lab Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Zai Lab'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 Biotechnology subindustry, Zai Lab'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.
Zai Lab Earnings Yield (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Zai Lab'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.
Zai Labs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Zai Lab's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-173.9 Mil.
What does a Earnings Yield (Joel Greenblatt) % of -10.48% mean?
Zai Lab (ZLAB) has a Earnings Yield (Joel Greenblatt) % of -10.48% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Zai Lab and its competitors. According to the industry distribution chart, Zai Lab ranks #693 out of 1340 companies in the Biotechnology industry, placing it in the top 51.7%.
Is Zai Lab's Earnings Yield (Joel Greenblatt) % too high?
Zai Lab's current Earnings Yield (Joel Greenblatt) % is -10.48%. Based on the distribution chart, Zai Lab ranks #693 out of 1340 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Earnings Yield (Joel Greenblatt) % compare to STOK and ADMA?
According to the Biotechnology industry distribution chart, Zai Lab ranks #693 out of 1340 companies for Earnings Yield (Joel Greenblatt) %. This places Zai Lab in the lower half of its industry. 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 Biotechnology company?
A good Earnings Yield (Joel Greenblatt) % depends on the Biotechnology industry context. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Zai Lab and its competitors. Zai Lab's current Earnings Yield (Joel Greenblatt) % is -10.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.27, compared to a current price of $19.14 — trading 36.8% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is -10.48%. Zai Lab's overall GF Score™ is 64/100 with 8 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 Zai Lab (ZLAB), the current Earnings Yield (Joel Greenblatt) % is -10.48% as of Mar. 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 Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $19.14 is trading 36.8% below its estimated GF Value™ of $30.27.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Earnings Yield (Joel Greenblatt) %: -10.48%
GF Value™: $30.27 vs. price of $19.14 (36.8% below fair value)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
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