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Earnings Yield using PE Ratio Formula

GoEarnings Yield Formula

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Earnings Yield is a financial metric that represents the earnings per share divided by the current market price per share, indicating the percentage of earnings generated relative to the stock price. Check FAQs

EY = (\frac{1}{PE}) \cdot 100

EY - Earnings Yield?PE - Price-Earnings (PE) Ratio?

Earnings Yield using PE Ratio Example

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Here is how the Earnings Yield using PE Ratio equation looks like with Values.

Here is how the Earnings Yield using PE Ratio equation looks like with Units.

Here is how the Earnings Yield using PE Ratio equation looks like.

4 = (\frac{1}{25}) \cdot 100

4 = (\frac{1}{25}) \cdot 100

4 = (\frac{1}{25}) \cdot 100

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Earnings Yield using PE Ratio Solution

Follow our step by step solution on how to calculate Earnings Yield using PE Ratio?

FIRST Step Consider the formula

EY = (\frac{1}{PE}) \cdot 100

Next Step Substitute values of Variables

∴

EY = (\frac{1}{25}) \cdot 100

Next Step Prepare to Evaluate

∴

EY = (\frac{1}{25}) \cdot 100

LAST Step Evaluate

∴

EY = 4

Earnings Yield using PE Ratio Formula Elements

Variables

Earnings Yield

Earnings Yield is a financial metric that represents the earnings per share divided by the current market price per share, indicating the percentage of earnings generated relative to the stock price.

Symbol: EY

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Earnings Yield

Price-Earnings (PE) Ratio

Price-Earnings (PE) Ratio is a financial metric calculated by dividing the market price per share by the earnings per share, indicating the valuation of a company's stock relative to its earnings.

Symbol: PE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Price-Earnings (PE) Ratio

Other Formulas to find Earnings Yield

Go Earnings Yield

EY = (\frac{EPS}{MPS}) \cdot 100

Other formulas in Strategic Financial Management category

Go Dividend Rate

DR = (\frac{DPS}{CP}) \cdot 100

Go Share Exchange Ratio

ER = \frac{OPTS}{ASP}

Go Value of Right

VOR = \frac{SP - RSP}{n}

Go Value of Right using New Shares

V = n ns \cdot \frac{MP - IP}{n total}

How to Evaluate Earnings Yield using PE Ratio?

Earnings Yield using PE Ratio evaluator uses Earnings Yield = (1/Price-Earnings (PE) Ratio)*100 to evaluate the Earnings Yield, The Earnings Yield using PE Ratio is the reciprocal of the PE ratio, calculated by dividing 1 by the PE ratio or EPS by the market price per share, indicating the percentage of earnings generated relative to the stock's market value. Earnings Yield is denoted by EY symbol.

How to evaluate Earnings Yield using PE Ratio using this online evaluator? To use this online evaluator for Earnings Yield using PE Ratio, enter Price-Earnings (PE) Ratio (PE) and hit the calculate button.

FAQs on Earnings Yield using PE Ratio

What is the formula to find Earnings Yield using PE Ratio?

The formula of Earnings Yield using PE Ratio is expressed as Earnings Yield = (1/Price-Earnings (PE) Ratio)*100. Here is an example- 40 = (1/25)*100.

How to calculate Earnings Yield using PE Ratio?

With Price-Earnings (PE) Ratio (PE) we can find Earnings Yield using PE Ratio using the formula - Earnings Yield = (1/Price-Earnings (PE) Ratio)*100.

What are the other ways to Calculate Earnings Yield?

Here are the different ways to Calculate Earnings Yield-

Earnings Yield=(Earnings per Share/Market Price per Share)*100

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