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Goosehead Insurance Earnings Yield (Joel Greenblatt) %

: 0.00% (As of Jun. 2020)
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Goosehead Insurance's Enterprise Value for the quarter that ended in Jun. 2020 was $2,757.35 Mil. Goosehead Insurance's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 was $9.40 Mil. Goosehead Insurance's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2020 was 0.00%.

NAS:GSHD' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -11.4   Med: 0.6   Max: 3
Current: 0.29

-11.4
3

During the past 4 years, the highest Earnings Yield (Joel Greenblatt) of Goosehead Insurance was 3.00%. The lowest was -11.40%. And the median was 0.60%.

NAS:GSHD's Earnings Yield (Joel Greenblatt) % is ranked lower than
79% of the 340 Companies
in the Insurance industry.

( Industry Median: 8.05 vs. NAS:GSHD: 0.29 )

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) %. Goosehead Insurance's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2020 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.


Goosehead Insurance 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.

Goosehead Insurance Annual Data
Dec16 Dec17 Dec18 Dec19
Earnings Yield (Joel Greenblatt) % 0.00 0.00 -1.44 0.91

Goosehead Insurance Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 1.00 0.98 0.91 0.80 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.


Goosehead Insurance Earnings Yield (Joel Greenblatt) % Distribution

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



Goosehead Insurance 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.

Goosehead Insurances Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2019 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=14.073/1548.6472
=0.91 %

Goosehead Insurance's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=9.404/2,757.35
=0.34 %

Goosehead Insurance's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 was 3.673 (Sep. 2019 ) + -2.161 (Dec. 2019 ) + 0.267 (Mar. 2020 ) + 7.625 (Jun. 2020 ) = $9.40 Mil.



Goosehead Insurance  (NAS:GSHD) 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.


Goosehead Insurance Earnings Yield (Joel Greenblatt) % Related Terms


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