What is Earthstone Energy Earnings Yield (Joel Greenblatt) %?
Earthstone Energy's Enterprise Value for the quarter that ended in Sep. 2023 was $4,651 Mil.
Earthstone Energy's EBIT for the trailing twelve months (TTM) ended in Sep. 2023 was $642 Mil. Earthstone Energy's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2023 was 13.81%.
The historical rank and industry rank for Earthstone Energy's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ESTE'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -124.3 Med: 2.75 Max: 32.95
Current: 16.21
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Earthstone Energy was 32.95%. The lowest was -124.30%. And the median was 2.75%.
ESTE's Earnings Yield (Joel Greenblatt) % is not ranked
in the Oil & Gas industry.
Industry Median: 6.56
vs ESTE: 16.21
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) %. Earthstone Energy's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2023 was -3.89%. 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.
Earthstone Energy Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Earthstone Energy'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.
Earthstone Energy Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of Earthstone Energy's Earnings Yield (Joel Greenblatt) %
For the Oil & Gas E&P subindustry, Earthstone Energy'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.
Earthstone Energy's Earnings Yield (Joel Greenblatt) % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Earthstone Energy's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Earthstone Energy's Earnings Yield (Joel Greenblatt) % falls into.
Earthstone Energy 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.
Earthstone Energys Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2022 is calculated as
Earthstone Energy's EBIT for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $642 Mil.
Earthstone Energy (NYSE:ESTE) 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.
Earthstone Energy Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Earthstone Energy's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Earthstone Energy (Earthstone Energy) Business Description
Earthstone Energy Inc is an independent oil and natural gas development and production company. The company focuses on the acquisition, development, exploration, and production of onshore, crude oil and natural gas reserves. It is also active in corporate mergers and the acquisition of oil and natural gas properties. The company's reserve portfolio consists of assets in the Midland Basin of West Texas, and the Eagle Ford Trend of South Texas. Its operations are all in the upstream segment of the oil and natural gas industry and are conducted onshore in the United States.
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