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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

  1. 1Values used
  2. 2Formula
  3. 3Earnings Yield= 5.00
  4. 4Implied P/E= 20.00
  5. 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.

Earnings Yield – Calculate Earnings Yield & Implied P/E