earnings yield

earnings yield definition - finance
A measure that is derived by dividing the expected earnings by the stockÂ’s price. The resulting figure estimates how much in earnings stockholders can expect to receive for each dollar paid for the stock. Earnings yield is the inverse of the P/E ratio, which is the price of the stock divided by earnings per share.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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