Earnings Yield
Free Earnings Yield calculator with clear step-by-step results.
About Earnings Yield
Earnings yield is the inverse of P/E and is comparable to bond yields.
Formula
Formula
Earnings yield = EPS ÷ share price × 100
Worked example
With the default values below, Earnings Yield returns Earnings Yield of 5.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Earnings per shareminimum 0 $
- 5 $
- Share priceminimum 0 $
- 100 $
Results
- Earnings Yield
- 5.00%
- Implied P/E
- 20.00
- Yield as Decimal
- 0.0500
Step by step
- 1Values used
- 2Formula
- 3Earnings Yield= 5.00
- 4Implied P/E= 20.00
- 5Yield as Decimal= 0.0500
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Earnings yield is the inverse of P/E and is comparable to bond yields.
Why does this matter?
Higher yield can mean cheaper or riskier, not always better.
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