Earnings yield

What is Earnings yield?

Earnings yield is the ratio of Diluted earnings per share over the trailing twelve months (TTM) to the company’s share price. 

Formula:

Diluted earnings per share TTM / Stock price

What does Earnings yield mean?

Earnings yield shows how much the company has earned per share as a percentage of its share price. It shows investors how much yield they are getting in earnings in return for owning the stock at its current share price.

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