What is Waddell & Reed Financial Earnings Yield (Joel Greenblatt) %?
Waddell & Reed Financial's Enterprise Value for the quarter that ended in Mar. 2021 was $908 Mil.
Waddell & Reed Financial's EBIT for the trailing twelve months (TTM) ended in Mar. 2021 was $81 Mil. Waddell & Reed Financial's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2021 was 9.13%.
The historical rank and industry rank for Waddell & Reed Financial's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
WDR'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.29 Med: 20.94 Max: 178.51
Current: 9.56
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Waddell & Reed Financial was 178.51%. The lowest was 7.29%. And the median was 20.94%.
WDR's Earnings Yield (Joel Greenblatt) % is not ranked
in the Asset Management industry.
Industry Median: 0
vs WDR: 9.56
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) %. Waddell & Reed Financial's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2021 was -5.16%. 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.
The historical data trend for Waddell & Reed Financial'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.
For the Asset Management subindustry, Waddell & Reed Financial'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.
Waddell & Reed Financial's Earnings Yield (Joel Greenblatt) % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Waddell & Reed Financial's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Waddell & Reed Financial'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.
Waddell & Reed Financials Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2020 is calculated as
Waddell & Reed Financial's EBIT for the trailing twelve months (TTM) ended in Mar. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $81 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.
Thank you for viewing the detailed overview of Waddell & Reed Financial's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Waddell & Reed Financial (Waddell & Reed Financial) Business Description
Waddell & Reed is a midsize asset manager that had $74.8 billion in assets under management at the end of 2020. The firm provides investment services for individual and institutional investors. Retail distribution, which accounts for 95% of managed assets, is handled through the company's own registered investment advisors (58% of AUM) and third-party broker/dealers and advisors (37%) in the wholesale channel. Equity-driven strategies account for an estimated 80% of total AUM, with fixed-income (18%) and money market (2%) offerings accounting for the remainder. The company has no discernible reach outside the United States.
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