When to use this calculator
Express per-share earnings as a percentage of the current share price. Earnings yield is not a cash distribution and can be negative when earnings are negative.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the Holding Period Return Calculator: Measure total simple return including cash received during the holding period.
PUTTING IT INTO PRACTICE
Earnings Yield: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Earnings per share | 5 |
| Share price | 50 |
| Result | 10 % |
- Check the input labels and enter the example values above.
- Apply the relationship: Earnings yield (%) = EPS/share price × 100.
- The result is 10 %, rounded for display.
How to interpret your result
Earnings yield is not a cash distribution and can be negative when earnings are negative.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
When is the earnings yield calculator useful?
Express per-share earnings as a percentage of the current share price. Earnings yield is not a cash distribution and can be negative when earnings are negative.
How do I use the earnings yield calculator?
Enter earnings per share, share price. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Earnings yield (%) = EPS/share price × 100.
What should I check before using the result?
Earnings yield is not a cash distribution and can be negative when earnings are negative.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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