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Moody's Earnings Yield (Joel Greenblatt) %

: 3.94% (As of Jun. 2021)
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Moody's's Enterprise Value for the quarter that ended in Jun. 2021 was $71,603 Mil. Moody's's EBIT for the trailing twelve months (TTM) ended in Jun. 2021 was $2,822 Mil. Moody's's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2021 was 3.94%.

The historical rank and industry rank for Moody's's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

NYSE:MCO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.12   Med: 6.78   Max: 14.04
Current: 3.76

3.12
14.04

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Moody's was 14.04%. The lowest was 3.12%. And the median was 6.78%.

NYSE:MCO's Earnings Yield (Joel Greenblatt) % is ranked higher than
58% of the 64 Companies
in the Capital Markets industry.

( Industry Median: 4.50 vs. NYSE:MCO: 3.76 )

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) %. Moody's's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2021 was 22.15%. 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.


Moody's Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Moody's'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.

Moody's Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.76 6.14 6.17 4.15 4.16

Moody's Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 4.28 4.25 4.16 4.56 3.94

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Moody's'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.

   

Moody's Earnings Yield (Joel Greenblatt) % Distribution

For the Capital Markets industry and Financial Services sector, Moody's's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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



Moody's 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.

Moody'ss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=2445/58743.16256
=4.16 %

Moody's's EBIT for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,822 Mil.



Moody's  (NYSE:MCO) 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.


Moody's Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Moody's's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Moody's Business Description

Moody's logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Address
7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007
Moody's (along with S&P Ratings) is a leading provider of credit ratings on fixed income securities. Moody's ratings segment, known as Moody's Investors Service or MIS, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. Moody's other segment is Moody's Analytics and consists of Research, Data, and Analytics or RD&A and Enterprise Risk Solutions or ERS. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know your customer (KYC) tools, commercial real estate data and analytical tools, and training services. ERS includes risk management software solutions to financial institutions.
Executives
Bermudez Jorge A. director CORPORATE LAW DEPT., CITIGROUP INC. 425 PARK AVENUE NEW YORK NY 10043
Esperdy Therese director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Mckinnell Henry A director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Van Saun Bruce director CITIZENS FINANCIAL GROUP, INC. 600 WASHINGTON BLVD STAMFORD CT 06901
Forlenza Vincent A director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Anderson Basil director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ANDERSON BASIL a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mcdaniel Raymond W director, officer: President and CEO 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Goggins John J officer: EVP and General Counsel 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Kaye Mark officer: SVP & Chief Financial Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Fauber Robert officer: Chief Operating Officer 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Sullivan Caroline officer: SVP-Corporate Controller 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Hughes Melanie officer: SVP & Chief HR Officer 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Hill Kathryn director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Zalm Gerrit director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007

Moody's Headlines

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