earnings yield

The ratio of earnings per share, after allowing for tax and interest payments on fixed interest debt, to the current share price. The inverse of the price-earnings ratio. It is the total twelve months earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage terms. We often look at earnings yield because this avoids the problem of zero earnings in the denominator of the price-earning ratio. Bloomberg Financial Dictionary
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An accounting ratio defined as net earnings per share multiplied by 100/80 and divided by the share price. The net earnings are multiplied by 100/80 to give an earnings yield which is calculated on the same basis as dividend yield. Broadly speaking, the lower the earnings yield, the higher the company's share price and the more highly rated the company is. Dresdner Kleinwort Wasserstein financial glossary

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earnings yield earnings yield yield1

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earnings yield UK US noun [C] FINANCE
a way of measuring financial performance by comparing a company's earnings per share in a particular period with its share price: »

The earnings yield has moved more or less in step with long-term bond rates.


Financial and business terms. 2012.

Look at other dictionaries:

  • Earnings yield — is the quotient of earnings per share divided by the share price. It is the reciprocal of the P/E ratio the E/P or the EPS.The earnings yield is quoted as a percentage, allowing an easy comparison to going bond rates.ApplicationsThe earnings… …   Wikipedia

  • Earnings Yield — The earnings per share for the most recent 12 month period divided by the current market price per share. The earnings yield (which is the inverse of the P/E ratio) shows the percentage of each dollar invested in the stock that was earned by the… …   Investment dictionary

  • Earnings yield — The ratio of earnings per share after allowing for tax and interest payments on fixed interest debt, to the current share price. The inverse of the price/earnings ratio. It s the Total Twelve Months earnings divided by number of outstanding… …   Financial and business terms

  • earnings yield — The ratio of the earnings per share of a company to the market price of the share, expressed as a percentage. See also: price–earnings ratio …   Accounting dictionary

  • earnings yield — /ˈɜnɪŋz jild/ (say erningz yeeld) noun the fraction calculated by dividing a company s earnings per share by its share price, expressed as a percentage …   Australian English dictionary

  • earnings yield — See yield …   Big dictionary of business and management

  • earnings yield — / ɜ:nɪŋz ji:ld/ noun the money earned in dividends per share as a percentage of the current market price of the share …   Dictionary of banking and finance

  • earnings yield — Fin money earned by a company during a year, expressed as a percentage of the price of one of its shares …   The ultimate business dictionary

  • earnings yield ratio — UK US noun [C] FINANCE ► the earnings yield shown as a percentage …   Financial and business terms

  • Bond Equity Earnings Yield Ratio - BEER — A metric used to evaluate the relationship between bond yields and earnings yields in the stock market. The Bond Equity Earnings Yield Ratio (BEER) has two parts – the top is represented by a benchmark bond yield (such as five or 10 year… …   Investment dictionary

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