Series 79: Earnings Yield

Taken from our Series 79 Top-off Online Guide

Earnings Yield

Earnings yield is the percentage of each dollar of the company’s market price that the company earns as profit. A stock’s earnings yield is the same as its earnings/price ratio. This number is the inverse of the price/earnings ratio and is calculated as:

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The EPS number for the prior 12 months, rather than prior quarter, is typically used to calculate earnings yield. The resulting

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