Earnings Yield Calculator

✖Earnings per Share is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.ⓘ Earnings per Share [EPS]			+10% -10%
✖Market Price per Share refers to the current price at which a single share of a company's stock is traded on the open market.ⓘ Market Price per Share [MPS]			+10% -10%

✖Earnings Yield is a financial metric that represents the earnings per share divided by the current market price per share, indicating the percentage of earnings generated relative to the stock price.ⓘ Earnings Yield [EY]

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Formula

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Earnings Yield

Formula

`"EY" = ("EPS"/"MPS")*100`

Example

`"4"=("120"/"3000")*100`

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Earnings Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Earnings Yield = (Earnings per Share/Market Price per Share)*100
EY = (EPS/MPS)*100
This formula uses 3 Variables

Variables Used

Earnings Yield - Earnings Yield is a financial metric that represents the earnings per share divided by the current market price per share, indicating the percentage of earnings generated relative to the stock price.
Earnings per Share - Earnings per Share is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.
Market Price per Share - Market Price per Share refers to the current price at which a single share of a company's stock is traded on the open market.

STEP 1: Convert Input(s) to Base Unit

Earnings per Share: 120 --> No Conversion Required
Market Price per Share: 3000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

EY = (EPS/MPS)*100 --> (120/3000)*100

Evaluating ... ...

EY = 4

STEP 3: Convert Result to Output's Unit

4 --> No Conversion Required

FINAL ANSWER

4 <-- Earnings Yield

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1500+ more calculators!

< 8 Strategic Financial Management Calculators

Value of Right using New Shares

Go Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares

Value of Right

Go Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share

Conversion Parity Price

Go Conversion Parity Price = Value of Convertible Security/Conversion Ratio

Share Exchange Ratio

Go Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price

Earnings Yield

Go Earnings Yield = (Earnings per Share/Market Price per Share)*100

Dividend Yield

Go Dividend Yield = (Dividend per Share/Market Price per Share)*100

Dividend Rate

Go Dividend Rate = (Dividend per Share/Current Share Price)*100

Earnings Yield using PE Ratio

Go Earnings Yield = (1/Price-Earnings (PE) Ratio)*100

Earnings Yield Formula

Earnings Yield = (Earnings per Share/Market Price per Share)*100
EY = (EPS/MPS)*100

What is Earnings Yield ?

Earnings Yield is a fundamental financial metric used by investors to evaluate the attractiveness of a stock or a company as an investment opportunity. It is calculated by dividing the earnings per share (EPS) by the current market price per share. Essentially, earnings yield shows the percentage of earnings generated for each dollar invested in the stock. A higher earnings yield is generally considered more favorable, indicating that the stock is undervalued relative to its earnings potential. Conversely, a lower earnings yield may suggest that the stock is overvalued. Investors often use earnings yield in conjunction with other valuation metrics, such as the price-earnings (P/E) ratio, to gain insights into the relative valuation of stocks within an industry or market.

How to Calculate Earnings Yield?

Earnings Yield calculator uses Earnings Yield = (Earnings per Share/Market Price per Share)*100 to calculate the Earnings Yield, The Earnings Yield is a financial ratio that represents the earnings per share divided by the market price per share, expressing the percentage of earnings generated relative to the stock's market value. Earnings Yield is denoted by EY symbol.

How to calculate Earnings Yield using this online calculator? To use this online calculator for Earnings Yield, enter Earnings per Share (EPS) & Market Price per Share (MPS) and hit the calculate button. Here is how the Earnings Yield calculation can be explained with given input values -> 4 = (120/3000)*100.

FAQ

What is Earnings Yield?

The Earnings Yield is a financial ratio that represents the earnings per share divided by the market price per share, expressing the percentage of earnings generated relative to the stock's market value and is represented as EY = (EPS/MPS)*100 or Earnings Yield = (Earnings per Share/Market Price per Share)*100. Earnings per Share is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock & Market Price per Share refers to the current price at which a single share of a company's stock is traded on the open market.

How to calculate Earnings Yield?

The Earnings Yield is a financial ratio that represents the earnings per share divided by the market price per share, expressing the percentage of earnings generated relative to the stock's market value is calculated using Earnings Yield = (Earnings per Share/Market Price per Share)*100. To calculate Earnings Yield, you need Earnings per Share (EPS) & Market Price per Share (MPS). With our tool, you need to enter the respective value for Earnings per Share & Market Price per Share and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Earnings Yield?

In this formula, Earnings Yield uses Earnings per Share & Market Price per Share. We can use 1 other way(s) to calculate the same, which is/are as follows -

Earnings Yield = (1/Price-Earnings (PE) Ratio)*100

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