What is Legg Mason Earnings Yield (Joel Greenblatt) %?
Legg Mason's Enterprise Value for the quarter that ended in Jun. 2020 was $5,724 Mil.
Legg Mason's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 was $510 Mil. Legg Mason's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2020 was 9.07%.
The historical rank and industry rank for Legg Mason's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LM'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -12.09 Med: 8.49 Max: 13.43
Current: 9.51
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Legg Mason was 13.43%. The lowest was -12.09%. And the median was 8.49%.
LM's Earnings Yield (Joel Greenblatt) % is not ranked
in the Asset Management industry.
Industry Median: 0
vs LM: 9.51
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) %. Legg Mason's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2020 was 29.04%. 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.
Legg Mason Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Legg Mason'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 Legg Mason's Earnings Yield (Joel Greenblatt) %
For the Asset Management subindustry, Legg Mason'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.
Legg Mason's Earnings Yield (Joel Greenblatt) % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Legg Mason's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Legg Mason'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.
Legg Masons Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2020 is calculated as
Legg Mason's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $510 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.
Legg Mason Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Legg Mason's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LM has been successfully added to your 