What is Shanda Games Earnings Yield (Joel Greenblatt) %?
Shanda Games's Enterprise Value for the quarter that ended in Dec. 2014 was $1,388.2 Mil.
Shanda Games's EBIT for the trailing twelve months (TTM) ended in Dec. 2014 was $213.0 Mil. Shanda Games's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2014 was 15.34%.
The historical rank and industry rank for Shanda Games's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
GAME's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Interactive Media industry.
Industry Median: 0 * Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.
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) %. Shanda Games's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2014 was 17.04%. 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.
Shanda Games Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Shanda Games'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.
Shanda Games Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Shanda Games's Earnings Yield (Joel Greenblatt) %
For the Electronic Gaming & Multimedia subindustry, Shanda Games'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.
Shanda Games's Earnings Yield (Joel Greenblatt) % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Shanda Games's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Shanda Games's Earnings Yield (Joel Greenblatt) % falls into.
Shanda Games 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.
Shanda Gamess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2014 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.
Shanda Games (NAS:GAME) 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.
Shanda Games Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Shanda Games's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shanda Games Ltd was incorporated in the Cayman Islands on June 12, 2008. The Company is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. It completed its initial public offering on September 30, 2009. It develop and source a broad array of game content through multiple channels, including in-house development, licensing, investment, acquisition, joint development and joint operation. As of March 31, 2015, it operated 35 MMO games and 29 mobile games in China and certain overseas markets. The games operated by the Company are: Mir II, BNB, Woool, Legend of Immortals, Age of Wushu, among others. It competes with other online game developers and operators in China, including Tencent Holdings Limited, NetEase, Inc., Changyou.com Limited, Perfect World Co., Ltd., Giant Interactive, Kingsoft, KongZhong Corporation, NetDragon Websoft, Inc. and The9 Limited.
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