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Cisco Systems (XSGO:CSCO) Earnings Yield (Joel Greenblatt) %

: 8.21% (As of Apr. 2023)
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Cisco Systems's Enterprise Value for the quarter that ended in Apr. 2023 was $217,134 Mil. Cisco Systems's EBIT for the trailing twelve months (TTM) ended in Apr. 2023 was $14,672 Mil. Cisco Systems's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2023 was 8.21%.

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

XSGO:CSCO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.74   Med: 9.41   Max: 19.45
Current: 7.79

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Cisco Systems was 19.45%. The lowest was 5.74%. And the median was 9.41%.

XSGO:CSCO's Earnings Yield (Joel Greenblatt) % is ranked better than
68.19% of 2427 companies
in the Hardware industry
Industry Median: 3.87 vs XSGO:CSCO: 7.79

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) %. Cisco Systems's Forward Rate of Return (Yacktman) % for the quarter that ended in Apr. 2023 was 10.04%. 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.


Cisco Systems Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Cisco Systems'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.

Cisco Systems Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.03 6.81 7.88 6.21 8.40

Cisco Systems Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23
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 7.87 8.40 8.35 7.79 8.21

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems'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.

   

Cisco Systems Earnings Yield (Joel Greenblatt) % Distribution

For the Hardware industry and Technology sector, Cisco Systems's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Cisco Systems's Earnings Yield (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the Earnings Yield (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.



Cisco Systems 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.

Cisco Systemss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jul. 2022 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=14837/223079.5
=6.65 %

Cisco Systems's EBIT for the trailing twelve months (TTM) ended in Apr. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $14,672 Mil.



Cisco Systems  (XSGO:CSCO) 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

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.


Cisco Systems Earnings Yield (Joel Greenblatt) % Related Terms

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


Cisco Systems (XSGO:CSCO) Business Description

Cisco Systems logo
Industry
Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

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