Earnings Yield Calculator
Calculate earnings yield percentage
About this calculator
The Earnings Yield Calculator determines the percentage return an investor receives from a company's earnings relative to its stock price. This metric, calculated as earnings per share divided by stock price, helps investors evaluate whether a stock is undervalued or overvalued compared to other investment opportunities. It's particularly useful for comparing stocks across different sectors and making informed investment decisions based on fundamental analysis.
How to use
Enter the company's earnings per share (EPS) and current stock price per share into the calculator. The tool will automatically compute the earnings yield percentage by dividing EPS by stock price and multiplying by 100. Higher percentages typically indicate better value investments.
Frequently asked questions
What is a good earnings yield percentage?
Generally, an earnings yield above 5-7% is considered attractive, but this varies by industry and market conditions.
How does earnings yield differ from dividend yield?
Earnings yield uses total earnings per share, while dividend yield only considers the portion paid as dividends.
Can earnings yield be negative?
Yes, if a company has negative earnings (losses), the earnings yield will be negative, indicating poor performance.