Earnings Yield |
| The earnings yield is the earnings per share (EPS) as a percentage of the current market price of the share. So if the EPS is 7p and the current market price is 116p, the earnings yield would be 7 / 116 x 100 = 6.03%. Earnings yield is not used as commonly as its reciprocal measure, the P/E ratio. On the same figures, the P/E would be 116 / 7 = 16.6. |
|
|