Loading…
Valuation
Earnings yield is a company's earnings per share divided by its share price, shown as a percentage. It is the P/E ratio turned upside down, which makes it easy to compare with a bond or fixed-deposit rate.
Earnings yield = EPS ÷ Share price × 100 = 100 ÷ P/E
A stock on a P/E of 20 has an earnings yield of 100 ÷ 20 = 5%.
Earnings yield is a company's earnings per share divided by its share price, shown as a percentage. It is the P/E ratio turned upside down, which makes it easy to compare with a bond or fixed-deposit rate.
Earnings yield = EPS ÷ Share price × 100 = 100 ÷ P/E. A stock on a P/E of 20 has an earnings yield of 100 ÷ 20 = 5%.
No. Earnings yield describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.