Term of the Day-Earnings Yield What does Earnings Yield mean? The - TopicsExpress

Term of the Day-Earnings Yield What does Earnings Yield mean? The earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield (which is the inverse of the P/E ratio) shows the percentage of each $ or ₹(for India) invested in the stock that was earned by the company.The earnings yield is used by many investment managers to determine optimal asset allocations.

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