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Tesco PLC  (OTCPK:TSCDY) Earnings Yield (Joel Greenblatt) %: 0.00% (As of Aug. 2017)

Tesco PLC's Enterprise Value for the quarter that ended in Aug. 2017 was $26,164 Mil. Tesco PLC's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was $828 Mil. Tesco PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Aug. 2017 was 0.00%.

OTCPK:TSCDY' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -27.4   Max: 13.8
Current: 5.46

-27.4
13.8

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Tesco PLC was 13.80%. The lowest was -27.40%. And the median was 8.00%.

OTCPK:TSCDY's Earnings Yield (Joel Greenblatt) % is ranked lower than
71% of the 377 Companies
in the Global industry.

( Industry Median: 5.84 vs. OTCPK:TSCDY: 5.46 )

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) %. Tesco PLC's Forward Rate of Return (Yacktman) % for the quarter that ended in Aug. 2017 was 0.00%. 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.

Tesco PLC Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.63 7.90 -19.72 3.21 3.27

Tesco PLC Semi-Annual Data

Feb08 Aug08 Feb09 Aug09 Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17
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 0.00 3.21 0.00 3.27 0.00

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.

Tesco PLCs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Feb. 2017 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=827.5/25111.2903
=3.30 %

Tesco PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Aug. 2017 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=827.5/26,164
=3.16 %

For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was $828 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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