Switch to:
Marvell Technology Group Ltd  (NAS:MRVL) Earnings Yield (Joel Greenblatt) %: 5.46% (As of Jul. 2017)

Marvell Technology Group Ltd's Enterprise Value for the quarter that ended in Jul. 2017 was $6,247 Mil. Marvell Technology Group Ltd's EBIT for the trailing twelve months (TTM) ended in Jul. 2017 was $341 Mil. Marvell Technology Group Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2017 was 5.46%.

NAS:MRVL' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -40.8   Max: 16.1
Current: 4.62

-40.8
16.1

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Marvell Technology Group Ltd was 16.10%. The lowest was -40.80%. And the median was 5.05%.

NAS:MRVL's Earnings Yield (Joel Greenblatt) % is ranked higher than
54% of the 852 Companies
in the Global industry.

( Industry Median: 3.30 vs. NAS:MRVL: 4.62 )

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) %. Marvell Technology Group Ltd's Forward Rate of Return (Yacktman) % for the quarter that ended in Jul. 2017 was 0.00%. 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.


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.

Marvell Technology Group Ltd Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.16 5.54 8.79 -33.67 2.48

Marvell Technology Group Ltd Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 0.94 3.65 2.48 4.52 5.46

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.


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.

Marvell Technology Group Ltds Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2017 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=117.384/5857.347
=2.00 %

Marvell Technology Group Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2017 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=340.903/6,247
=5.46 %

Marvell Technology Group Ltd's EBIT for the trailing twelve months (TTM) ended in Jul. 2017 was 82.953 (Oct. 2016 ) + 24.047 (Jan. 2017 ) + 102.272 (Apr. 2017 ) + 131.631 (Jul. 2017 ) = $341 Mil.



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.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK