Earnings Yield Calculator
The inverse of P/E — earnings as a percentage of price.
Earnings yield explained
Earnings yield (EPS ÷ price) is the flip side of the P/E ratio, expressed as a percentage. It lets you compare a stock’s earning power directly against bond yields and other stocks.
Why it’s useful
If a stock’s earnings yield is well above the 10-year government bond yield, equity looks attractive on a relative basis — a core idea behind Joel Greenblatt’s Magic Formula.
Frequently asked questions
Earnings yield vs dividend yield?
Earnings yield counts all profit (retained + paid out). Dividend yield counts only cash paid to shareholders. Earnings yield is the better valuation gauge.