41+ Earnings Yield Ratio Formula Images. Earnings yield helps the investor understand how much he will be earning for each dollar invested in the company and is therefore calculated as earnings per share are divided by the stock price per share. If a company has earnings per share (eps) ratio of 2.8 and its shares are traded in the market at the rate of $56 per share, its earnings.
And how should it be interpreted?
Companies need a continuous process of analyzing data and. Dividend yield ratio = dividend per equity share / market value per share. It is the reciprocal of the p/e ratio. With stocks, there is generally always a great deal of uncertainty as to whether a company will earn it's predicted yield for the year.