48+ Earning Yield Computed By Pictures. Earning yield is the quotient of earnings per share divided by the share price (e/p). The earnings yield is a way of looking at the income generated by a company in a similar way to the yield you'd get from a bond or the dividend yield of a share.
The earnings yield is the ratio of a company's last twelve months (ltm) of earnings per share (eps) to its stock price.
Earnings per share ratio (eps ratio) is computed by the following formula: As defined in the little book that beats the market, the earnings yield compares the profit generated with the market's valuation of the company. The earnings yields gives you an easy to understand metric to compare versus using the p/e ratio. If a company has a high earnings yield, it could be because its future outlook is.
