What is Houlihan Lokey Earnings Yield (Joel Greenblatt) %?
Houlihan Lokey's Enterprise Value for the quarter that ended in Dec. 2023 was $8,150 Mil.
Houlihan Lokey's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $351 Mil. Houlihan Lokey's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 4.30%.
The historical rank and industry rank for Houlihan Lokey's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
HLI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.98 Med: 8.02 Max: 13.54
Current: 4.07
During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Houlihan Lokey was 13.54%. The lowest was 3.98%. And the median was 8.02%.
HLI's Earnings Yield (Joel Greenblatt) % is ranked better than 55.47% of 786
companies
in the Capital Markets industry
Industry Median: 2.41
vs HLI: 4.07
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) %. Houlihan Lokey's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 22.17%. 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.
Houlihan Lokey Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Houlihan Lokey'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.
Competitive Comparison of Houlihan Lokey's Earnings Yield (Joel Greenblatt) %
For the Capital Markets subindustry, Houlihan Lokey'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.
Houlihan Lokey's Earnings Yield (Joel Greenblatt) % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey'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.
Houlihan Lokeys Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2023 is calculated as
Houlihan Lokey's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $351 Mil.
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.
Houlihan Lokey Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Houlihan Lokey's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Houlihan Lokey (Houlihan Lokey) Business Description
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
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