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Microchip Technology's Enterprise Value for the quarter that ended in Dec. 2023 was $54,179 Mil. Microchip Technology's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $2,540 Mil. Microchip Technology's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 5.81%.
The historical rank and industry rank for Microchip Technology's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Microchip Technology was 7.54%. The lowest was 0.92%. And the median was 2.94%.
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) %. Microchip Technology's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 24.64%. 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 Microchip Technology'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.
Microchip Technology Annual Data | |||||||||||||||||||||
Trend | Mar15 | Mar16 | Mar17 | Mar18 | Mar19 | Mar20 | Mar21 | Mar22 | Mar23 | Mar24 | |||||||||||
Earnings Yield (Joel Greenblatt) % | Get a 7-Day Free Trial | 2.44 | 1.33 | 3.51 | 5.96 | 4.72 |
Microchip Technology Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Earnings Yield (Joel Greenblatt) % | Get a 7-Day Free Trial | 5.96 | 6.05 | 7.14 | 5.81 | - |
For the Semiconductors subindustry, Microchip Technology'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.
For the Semiconductors industry and Technology sector, Microchip Technology's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Microchip Technology'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.
Microchip Technologys Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2023 is calculated as
Earnings Yield (Joel Greenblatt) | = | EBIT | / | Enterprise Value |
= | 3104.1 | / | 52064.6388 | |
= | 5.96 % |
Microchip Technology'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 $2,540 Mil.
Microchip Technology (NAS:MCHP) 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.
Thank you for viewing the detailed overview of Microchip Technology's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
James Eric Bjornholt | officer: VP and CFO | MICROCHIP TECHNOLOGY INCORPORATED, 2355 WEST CHANDLER BOULEVARD, CHANDLER AZ 85224-6199 |
Karlton D Johnson | director | C/O MICROCHIP TECHNOLOGY INCORPORATED, 2355 W. CHANDLER BOULEVARD, CHANDLER AZ 85224-6199 |
Matthew W Chapman | director | 400 SW SIXTH AVENUE, SUITE 200, PORTLAND OR 97204 |
Robert A. Rango | director | 5300 CALIFORNIA AVENUE, IRVINE CA 92617 |
Richard J Simoncic | officer: VP, Microperipheral Prod Div | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Mitchell R Little | officer: VP, WW Sales and Appns. | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Ganesh Moorthy | officer: VP, MCU and Auto. Div. | MICROCHIP, 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Steve Sanghi | director, officer: President, CEO, Chairman | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Wade F Meyercord | director | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Stephen V Drehobl | officer: VP, Security, MCU & Tech Div. | |
L B Day | director | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
Karen Marie Rapp | director | C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
Esther Johnson | director | 8731 S 600 W, CLAYPOOL IN 46510 |
Hugo Martinez Albert J | director | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
David S Lambert | officer: VP, Fab Operations | 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199 |
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