Penske Automotive Group (Penske Automotive Group) Earnings Yield (Joel Greenblatt) %

: 8.92% (As of Dec. 2023)

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Penske Automotive Group's Enterprise Value for the quarter that ended in Dec. 2023 was $18,442 Mil. Penske Automotive Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $1,645 Mil. Penske Automotive Group's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 8.92%.

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

PAG' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.47 Med: 7.18 Max: 14.52
Current: 9.33

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Penske Automotive Group was 14.52%. The lowest was 5.47%. And the median was 7.18%.

PAG's Earnings Yield (Joel Greenblatt) % is ranked better than
65.57% of 1307 companies
in the Vehicles & Parts industry
Industry Median: 5.72 vs PAG: 9.33

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) %. Penske Automotive Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 26.48%. 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.

Penske Automotive Group Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Penske Automotive Group'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.

Penske Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Earnings Yield (Joel Greenblatt) %

6.29

7.25

11.63

13.32

8.92

Penske Automotive Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Earnings Yield (Joel Greenblatt) %																13.32	11.53	10.06	9.69	8.92

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Penske Automotive Group'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.

Penske Automotive Group Earnings Yield (Joel Greenblatt) % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

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

Penske Automotive Group 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.

Penske Automotive Groups Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)	=	EBIT	/	Enterprise Value
	=	1645.2	/	18441.718712
	=	8.92 %

Penske Automotive Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,645 Mil.

Penske Automotive Group (NYSE:PAG) 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

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.

Penske Automotive Group Earnings Yield (Joel Greenblatt) % Related Terms

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

Penske Automotive Group (Penske Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Penske Automotive Group Inc (NYSE:PAG) » Definitions » Earnings Yield (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

UA9:Germany

Address

2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954

Website

https://www.penskeautomotive.com

Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.

Executives

Sandra E. Pierce	director	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr	director, officer: President	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
John Barr	director	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
Michelle Hulgrave	officer: EVP & CFO	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Shane M. Spradlin	officer: EVP, Gen. Counsel & Sec.	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kimberly J Mcwaters	director	20410 NORTH 19TH AVENUE, PHOENIX AZ 85027
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Greg C Smith	director	FORD MOTOR COMPANY, 21175 OAKWOOD BLVD, DEARBORN MI 48124
Denker Claude H Iii	officer: EVP - Human Resources	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Roger S Penske	director, 10 percent owner, officer: Chair & CEO	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
H Brian Thompson	director	1950 OLD GALLOWS ROAD SUITE 201, VIENNA VA 22182
Ronald G Steinhart	director	3890 WEST NORTHWEST HIGHWAY SUITE 400, DALLAS TX 75220
Michael R Eisenson	director	C/O CHARLESBANK CAPITAL PARTNERS, 600 ATLANTIC AV 28TH FL, BOSTON MA 02210
Gregory W Penske	director	3534 NORTH PECK ROAD, EL MONTE CA 91731
Wolfgang Duerheimer	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302