-
How to Use the Earnings Yield Yardstick?
What is Earnings Yield? Earnings yield is the ratio of a company’s earnings to its market price. In essence, it shows what percentage of your investment in a stock is ‘earned’ back annually in profit. The formula is : Earnings Yield = (Earnings per Share (EPS) / Stock price) × 100 For example, if a stock is priced at…