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Proto Labs Inc  (NYSE:PRLB) Earnings Yield (Joel Greenblatt) %: 4.01% (As of Jun. 2017)

Proto Labs Inc's Enterprise Value for the quarter that ended in Jun. 2017 was $1,640.7 Mil. Proto Labs Inc's EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was $65.9 Mil. Proto Labs Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2017 was 4.01%.

NYSE:PRLB' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.2   Max: 5.9
Current: 3.56

2.2
5.9

During the past 8 years, the highest Earnings Yield (Joel Greenblatt) of Proto Labs Inc was 5.90%. The lowest was 2.20%. And the median was 3.70%.

NYSE:PRLB's Earnings Yield (Joel Greenblatt) % is ranked lower than
55% of the 1820 Companies
in the Global industry.

( Industry Median: 4.59 vs. NYSE:PRLB: 3.56 )

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) %. Proto Labs Inc's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2017 was 16.85%. 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.


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.

Proto Labs Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only 3.81 2.95 3.64 4.23 4.93

Proto Labs Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 4.49 4.30 4.93 5.19 4.01

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.


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.

Proto Labs Incs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2016 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=61.767/1252.503
=4.93 %

Proto Labs Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2017 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=65.857/1,640.7
=4.01 %

Proto Labs Inc's EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was 16.942 (Sep. 2016 ) + 14.831 (Dec. 2016 ) + 17.682 (Mar. 2017 ) + 16.402 (Jun. 2017 ) = $65.9 Mil.



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.


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