Earnings Yield using PE Ratio Calculator

✖Price-Earnings (PE) Ratio is a financial metric calculated by dividing the market price per share by the earnings per share, indicating the valuation of a company's stock relative to its earnings.ⓘ Price-Earnings (PE) Ratio [PE]

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✖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 using PE Ratio [EY]

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Formula

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Earnings Yield using PE Ratio

Formula

`"EY" = (1/"PE")*100`

Example

`"4"=(1/"25")*100`

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Earnings Yield using PE Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Earnings Yield = (1/Price-Earnings (PE) Ratio)*100
EY = (1/PE)*100
This formula uses 2 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.
Price-Earnings (PE) Ratio - Price-Earnings (PE) Ratio is a financial metric calculated by dividing the market price per share by the earnings per share, indicating the valuation of a company's stock relative to its earnings.

STEP 1: Convert Input(s) to Base Unit

Price-Earnings (PE) Ratio: 25 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

EY = (1/PE)*100 --> (1/25)*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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Created by Keerthika Bathula

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

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< 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 using PE Ratio Formula

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

What is Earnings Yield using PE Ratio ?

Earnings Yield, derived from the Price-Earnings (PE) Ratio, is a key metric used by investors to gauge the attractiveness of a stock's valuation. It is calculated by taking the inverse of the PE ratio, or dividing the earnings per share (EPS) by the market price per share. A higher earnings yield signifies that the stock is generating more earnings relative to its price, suggesting potential undervaluation. Conversely, a lower earnings yield may indicate overvaluation. Investors often compare earnings yields across different stocks or industries to identify investment opportunities with favorable earnings potential relative to their market prices.

How to Calculate Earnings Yield using PE Ratio?

Earnings Yield using PE Ratio calculator uses Earnings Yield = (1/Price-Earnings (PE) Ratio)*100 to calculate the Earnings Yield, The Earnings Yield using PE Ratio is the reciprocal of the PE ratio, calculated by dividing 1 by the PE ratio or EPS by the market price per share, indicating 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 PE Ratio using this online calculator? To use this online calculator for Earnings Yield using PE Ratio, enter Price-Earnings (PE) Ratio (PE) and hit the calculate button. Here is how the Earnings Yield using PE Ratio calculation can be explained with given input values -> 40 = (1/25)*100.

FAQ

What is Earnings Yield using PE Ratio?

The Earnings Yield using PE Ratio is the reciprocal of the PE ratio, calculated by dividing 1 by the PE ratio or EPS by the market price per share, indicating the percentage of earnings generated relative to the stock's market value and is represented as EY = (1/PE)*100 or Earnings Yield = (1/Price-Earnings (PE) Ratio)*100. Price-Earnings (PE) Ratio is a financial metric calculated by dividing the market price per share by the earnings per share, indicating the valuation of a company's stock relative to its earnings.

How to calculate Earnings Yield using PE Ratio?

The Earnings Yield using PE Ratio is the reciprocal of the PE ratio, calculated by dividing 1 by the PE ratio or EPS by the market price per share, indicating the percentage of earnings generated relative to the stock's market value is calculated using Earnings Yield = (1/Price-Earnings (PE) Ratio)*100. To calculate Earnings Yield using PE Ratio, you need Price-Earnings (PE) Ratio (PE). With our tool, you need to enter the respective value for Price-Earnings (PE) Ratio 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 Price-Earnings (PE) Ratio. We can use 1 other way(s) to calculate the same, which is/are as follows -

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

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