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Costco Wholesale Earnings Yield (Joel Greenblatt) %

: 0.00% (As of Aug. 2019)
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Costco Wholesale's Enterprise Value for the quarter that ended in Aug. 2019 was $128,593 Mil. Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in Aug. 2019 was $3,944 Mil. Costco Wholesale's Earnings Yield (Joel Greenblatt) for the quarter that ended in Aug. 2019 was 0.00%.

NAS:COST' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.7   Max: 11.2
Current: 3.05

2.7
11.2

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Costco Wholesale was 11.20%. The lowest was 2.70%. And the median was 6.30%.

NAS:COST's Earnings Yield (Joel Greenblatt) % is ranked lower than
63% of the 368 Companies
in the Retail - Defensive industry.

( Industry Median: 5.12 vs. NAS:COST: 3.05 )

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) %. Costco Wholesale's Forward Rate of Return (Yacktman) % for the quarter that ended in Aug. 2019 was 5.42%. 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.


Costco Wholesale Earnings Yield (Joel Greenblatt) % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Costco Wholesale Annual Data
Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.06 5.22 5.97 4.51 3.83

Costco Wholesale Quarterly Data
Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 Apr19 May19 Aug19
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 4.59 5.05 0.00 3.24 0.00

Competitive Comparison
* 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.


Costco Wholesale Earnings Yield (Joel Greenblatt) % Distribution

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



Costco Wholesale 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.

Costco Wholesales Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Aug. 2019 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4915/128275.98348
=3.83 %

Costco Wholesale's Earnings Yield (Joel Greenblatt) for the quarter that ended in Aug. 2019 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=3944/128,593
=3.07 %

Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in Aug. 2019 was 1249 (Feb. 2019 ) + 0 (Apr. 2019 ) + 1158 (May. 2019 ) + 1537 (Aug. 2019 ) = $3,944 Mil.



Costco Wholesale  (NAS:COST) 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.


Costco Wholesale Earnings Yield (Joel Greenblatt) % Related Terms


Costco Wholesale Earnings Yield (Joel Greenblatt) % Headlines

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