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Finance Dictionary and Glossary of Investment Terms
earnings yield
Definition 1.
Earnings per share for the most recent 12 months divided by current price per share. The reciprocal of the price/earnings ratio.
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Definition 2.
The 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.
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Definition 3.
The earnings per share for the most recent 12 months divided by market price per share.
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