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Earnings yield |
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Earnings yieldThe ratio of earnings per share, after allowing for tax and interest payments on fixed interest debt, to the current share price. The inverse of the price-earnings ratio. It is the total twelve months, earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage terms. We often look at earnings yield because this avoids the problem of zero earnings in the denominator of the price-earning ratio.Earnings yieldThe earnings of a company are its annual profits after deduction of tax, dividends to preference shareholders and bondholders. They are usually expressed on a per-share basis (e.g. 7p), and the earnings per share (EPS) figure is calculated by dividing total earnings by the average number of shares in issue for the relevant accounting period.e.g. earnings or £2m, with 10m shares in issue would give an EPS of 20pThe earnings yield is the EPS as a percentage of the current market price of the share. So if the EPS was 7p and the current market price is 116p, the earnings yield7 / 116 x 100 = 6.03%Earnings yield is not used as commonly as its reciprocal measure, the P/E ratio. On the same figures, the P/E would be:116 / 7 = 16.6Similar MatchesEarnings before taxes (EBT)Earnings before taxes (EBT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of income taxes. Earnings factorEarnings factorThis is a theoretical earnings figure that is used for working out state pensions or guaranteed minimum pensions. Adjusted earningsAdjusted earningsIf a company's earnings figures are distorted either positively or negatively by exceptional one-off occurrences in the year, its directors can choose to clarify the performance by releasing adjusted earnings. In other words, earnings with the exceptional items stripped out which they believe are more representative of its underlying performance. Earnings before interest and, taxes (EBIT)Earnings before interest and, taxes (EBIT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Earnings response coefficientEarnings response coefficientA measure of relation of stock returns to earnings surprises around the time of corporate earnings announcements. Further Suggestionstaxable earningsEarnings retention ratio earnings Earnings momentum Earnings normalised earnings Quality of earnings Fully diluted earnings per shares Earnings before interest, taxes, and depreciation (EBITD) price earnings growth factor retained earnings Accounting earnings lower earnings limit earnings cap upper earnings level Earnings price ratio State Earnings Related Pension Scheme Retained earnings Earnings before interest, taxes, depreciation, and amortization (EBITDA) band earnings Primary earnings per (common) share Earnings before interest after taxes (EBIAT) Normalized earnings Pretax earnings or profits Earnings |
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