How to calculate Earnings yield
The Earnings yield formula, with plain worked examples you can check yourself.
Earnings yield = EPS ÷ Price × 100
The result is a percentage (%).
Worked examples
EPS = 20 · Price = 200Earnings yield = 10%
EPS = 4 · Price = 100Earnings yield = 4%
EPS = 20 · Price = 250Earnings yield = 8%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Investing & Returns.
Related terms
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