What is Pepco Holdings Earnings Yield (Joel Greenblatt) %?
Pepco Holdings's Enterprise Value for the quarter that ended in Dec. 2015 was $12,827 Mil.
Pepco Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 was $727 Mil. Pepco Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2015 was 5.67%.
The historical rank and industry rank for Pepco Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
POM's Earnings Yield (Joel Greenblatt) % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 6.955 * Ranked among companies with meaningful Earnings Yield (Joel Greenblatt) % only.
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) %. Pepco Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2015 was -2.13%. 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.
Pepco Holdings Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Pepco Holdings'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 Pepco Holdings's Earnings Yield (Joel Greenblatt) %
For the Utilities - Regulated Electric subindustry, Pepco Holdings'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.
Pepco Holdings's Earnings Yield (Joel Greenblatt) % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pepco Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Pepco Holdings'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.
Pepco Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2015 is calculated as
Pepco Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $727 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.
Pepco Holdings Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Pepco Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pepco Holdings (Pepco Holdings) Business Description
Pepco Holdings Inc was incorporated in Delaware in 2001, for the purpose of effecting the acquisition of Conectiv by Potomac Electric Power Company. Pepco Holdings, Inc. is a public utility holding Company that, through its operating subsidiaries, is engaged in two principal business operations: electricity and natural gas delivery, and competitive energy generation, marketing and supply. Pepco is engaged in the transmission and distribution of electricity in Washington, D.C. and portions of Prince George's and Montgomery Counties in suburban Maryland. Pepco was incorporated in Washington, D.C. in 1896 and became a domestic Virginia corporation in 1949. PHI, through its subsidiaries, is subject to regulation by various federal, regional, state, and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal, and limitations on land use. Pepco Energy Services sells retail electricity and natural gas and provides integrated energy management services in the mid-Atlantic region, and its subsidiaries own and operate generation plants located in PJM. Pepco Energy Services also provides high voltage construction and maintenance services to utilities and other customers throughout the United States and low voltage electric and telecommunication construction and maintenance services in the Washington, D.C. area. PHI's business is to remain a regional diversified energy delivery utility and competitive energy services Company focused on value creation and operational excellence.
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