Equity Valuation
Earnings Yield
Definition
What is Earnings Yield?
Earnings per shareNet income attributable to ordinary shareholders divided by weighted average ordinary shares. divided by share priceThe market price at which one share is quoted or traded., the inverse of the P/E ratio.
Example in practice
How This Looks in Practice
₦10 EPS on a ₦100 share gives a 10% earnings yield.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.