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Phillips 66 Earnings Yield (Joel Greenblatt) %

: 11.19% (As of Sep. 2019)
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Phillips 66's Enterprise Value for the quarter that ended in Sep. 2019 was $58,075 Mil. Phillips 66's EBIT for the trailing twelve months (TTM) ended in Sep. 2019 was $6,494 Mil. Phillips 66's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2019 was 11.19%.

NYSE:PSX' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.6   Max: 28.9
Current: 10.08

4.6
28.9

During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Phillips 66 was 28.90%. The lowest was 4.60%. And the median was 12.40%.

NYSE:PSX's Earnings Yield (Joel Greenblatt) % is ranked higher than
73% of the 1267 Companies
in the Oil & Gas industry.

( Industry Median: 3.57 vs. NYSE:PSX: 10.08 )

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) %. Phillips 66's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2019 was 9.44%. 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.


Phillips 66 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.

Phillips 66 Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.79 12.64 4.70 6.59 15.77

Phillips 66 Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 8.70 15.77 13.40 13.76 11.19

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.


Phillips 66 Earnings Yield (Joel Greenblatt) % Distribution

* The bar in red indicates where Phillips 66's Earnings Yield (Joel Greenblatt) % falls into.



Phillips 66 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.

Phillips 66s Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2018 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=7949/50367.3495
=15.78 %

Phillips 66's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2019 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=6494/58,075
=11.18 %

Phillips 66's EBIT for the trailing twelve months (TTM) ended in Sep. 2019 was 3039 (Dec. 2018 ) + 459 (Mar. 2019 ) + 1944 (Jun. 2019 ) + 1052 (Sep. 2019 ) = $6,494 Mil.



Phillips 66  (NYSE:PSX) 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.


Phillips 66 Earnings Yield (Joel Greenblatt) % Related Terms


Phillips 66 Earnings Yield (Joel Greenblatt) % Headlines

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