What is Royalty Pharma Earnings Yield (Joel Greenblatt) %?
Royalty Pharma's Enterprise Value for the quarter that ended in Dec. 2023 was $21,007 Mil.
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $1,887 Mil. Royalty Pharma's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 8.98%.
The historical rank and industry rank for Royalty Pharma's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
RPRX'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.61 Med: 5.31 Max: 13.47
Current: 10.85
During the past 7 years, the highest Earnings Yield (Joel Greenblatt) of Royalty Pharma was 13.47%. The lowest was 1.61%. And the median was 5.31%.
RPRX's Earnings Yield (Joel Greenblatt) % is ranked better than 96.27% of 1394
companies
in the Biotechnology industry
Industry Median: -15.455
vs RPRX: 10.85
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) %. Royalty Pharma's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 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.
Royalty Pharma Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Royalty Pharma'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.
Competitive Comparison of Royalty Pharma's Earnings Yield (Joel Greenblatt) %
For the Biotechnology subindustry, Royalty Pharma'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.
Royalty Pharma's Earnings Yield (Joel Greenblatt) % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Royalty Pharma'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.
Royalty Pharmas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,887 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.
Royalty Pharma Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Royalty Pharma's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Royalty Pharma (Royalty Pharma) Business Description
Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
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