Description
The Earnings Yield is simply the inverse of the P/E ratio, expressed as a percentage.
Calculation
What it Means
The Earnings Yield tells us, per share, the amount a stock yields in earnings relative to its price. For example, if a stock trades at $100 a share and has earnings of $10 per share, then the P/E is 10, and the earnings yield is $10 / $100 X 100 = 10%.