Earnings yield
What is Earnings yield?
Earnings yield is the ratio of Diluted earnings per share over the trailing twelve months (TTM) to the company’s share price.
Formula:
Diluted earnings per share TTM / Stock price
What does Earnings yield mean?
Earnings yield shows how much the company has earned per share as a percentage of its share price. It shows investors how much yield they are getting in earnings in return for owning the stock at its current share price.