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Broadcom (NAS:AVGO) Earnings Yield (Joel Greenblatt) %

: 5.17% (As of Jul. 2022)
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Broadcom's Enterprise Value for the quarter that ended in Jul. 2022 was $246,414 Mil. Broadcom's EBIT for the trailing twelve months (TTM) ended in Jul. 2022 was $12,748 Mil. Broadcom's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2022 was 5.17%.

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

AVGO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.69   Med: 3.11   Max: 9.13
Current: 5.22

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Broadcom was 9.13%. The lowest was -0.69%. And the median was 3.11%.

AVGO's Earnings Yield (Joel Greenblatt) % is ranked better than
53.06% of 931 companies
in the Semiconductors industry
Industry Median: 4.50 vs AVGO: 5.22

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) %. Broadcom's Forward Rate of Return (Yacktman) % for the quarter that ended in Jul. 2022 was 24.78%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven 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.


Broadcom (NAS:AVGO) Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Broadcom'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.

Broadcom Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.95 4.96 2.54 2.40 3.50

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Earnings Yield (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.32 3.50 3.63 4.36 5.17

Broadcom (NAS:AVGO) Earnings Yield (Joel Greenblatt) % Competitive Comparison

For the Semiconductors subindustry, Broadcom'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.

   

Broadcom (NAS:AVGO) Earnings Yield (Joel Greenblatt) % Distribution

For the Semiconductors industry and Technology sector, Broadcom's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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



Broadcom 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.

Broadcoms Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Oct. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=8650/247173.71
=3.50 %

Broadcom's EBIT for the trailing twelve months (TTM) ended in Jul. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $12,748 Mil.



Broadcom  (NAS:AVGO) 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.


Broadcom Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Broadcom's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom (NAS:AVGO) Business Description

Broadcom logo
Industry
Address
1320 Ridder Park Drive, San Jose, CA, USA, 95131-2313
Broadcom--the combined entity of Broadcom and Avago--boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and Symantec's enterprise security business to bolster its offerings in software.
Executives
Fernandez Raul J director 11600 SUNRISE VALLEY DR RESTON VA 20191
Lien Justine director 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Bryant Diane M director 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
You Harry L. director EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Krause Thomas H. officer: Chief Financial Officer 1320 RIDDER PARK SAN JOSE CA 95131
Ingram Bryan officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED 350 WEST TRIMBLE ROAD, BLDG. 90 SAN JOSE CA 95131
Spears Kirsten M. officer: Principal Accounting Officer 1320 RIDDER PARK SAN JOSE CA 95131
Kawwas Charlie B officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC. 350 WEST TRIMBLE ROAD SAN JOSE CA 95131
Brazeal Mark David officer: Chief Legal Officer 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Tan Hock E director, officer: President and CEO BROADCOM INC. 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Silver Lake Partners V De (aiv), L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Associates V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Slta V (gp), L.l.c. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Group, L.l.c. director 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025

Broadcom (NAS:AVGO) Headlines

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