What is East African Breweries Earnings Yield (Joel Greenblatt) %?
East African Breweries's Enterprise Value for the quarter that ended in Jun. 2023 was KES183,462 Mil.
East African Breweries's EBIT for the trailing twelve months (TTM) ended in Jun. 2023 was KES24,192 Mil. East African Breweries's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2023 was 13.19%.
The historical rank and industry rank for East African Breweries's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
NAI:EABL'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.72 Med: 7.92 Max: 18.45
Current: 13.81
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of East African Breweries was 18.45%. The lowest was 4.72%. And the median was 7.92%.
NAI:EABL's Earnings Yield (Joel Greenblatt) % is ranked better than 90.87% of 219
companies
in the Beverages - Alcoholic industry
Industry Median: 5.21
vs NAI:EABL: 13.81
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) %. East African Breweries's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2023 was 14.08%. 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.
East African Breweries Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for East African Breweries'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.
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East African Breweries Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of East African Breweries's Earnings Yield (Joel Greenblatt) %
For the Beverages - Brewers subindustry, East African Breweries'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.
East African Breweries's Earnings Yield (Joel Greenblatt) % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where East African Breweries's Earnings Yield (Joel Greenblatt) % falls into.
East African Breweries 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.
East African Breweriess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.
East African Breweries (NAI:EABL) 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.
East African Breweries Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of East African Breweries's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
East African Breweries (NAI:EABL) Business Description
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue primarily from brewing, marketing, and selling of drinks, malt and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.
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