Joel Greenblatt
Two numbers only: what the business earns on its capital, and what you get for the price.
| Measure | Formula | Median | Middle half | Reporting it |
|---|---|---|---|---|
| Return on capital employed | Operating income ÷ (equity + total debt) | 10.1% | 5.6% – 16.7% | 444 |
Where each comes from
| Return on capital employed | His return on capital divides operating earnings by net working capital plus net fixed assets. The closest measure computed here uses equity plus total debt as the denominator — related, and not identical, so treat this as an approximation of his figure rather than as his figure. |
|---|
Source: The Little Book That Beats the Market.
What this cannot tell you
His second number, earnings yield, is operating earnings over enterprise value, and enterprise value needs a share price. The box on any company page computes an earnings yield, but from earnings per share after tax and interest — a different and narrower measure than his.
This page describes a published method and applies its measures to filings. It is not a score, not a ranking and not a recommendation, and no page here aggregates these into a verdict. · All 11 metrics