Free Earnings Yield Calculator
Determine Stock Value Through Earnings
The Earnings Yield Calculator helps investors understand the profitability of a stock relative to its market price. By entering the earnings per share and the stock price, this tool calculates the earnings yield, which is the inverse of the P/E ratio. A higher earnings yield can indicate a stock is undervalued, while a lower yield may suggest overvaluation. This calculator is useful for investors looking to compare investment opportunities across stocks and markets. Regular use can aid in making informed decisions, assessing potential returns, and building a balanced portfolio. Simple, clear, and effective, the Earnings Yield Calculator allows both novice and experienced investors to evaluate stocks quickly and make smarter investment choices.
Earnings Yield Calculator
Calculate the earnings yield of a stock as a percentage.
Calculation Results
Earnings Yield
0.00%
Calculation Breakdown
Earnings Yield Calculator Guide
The Formula We Use
Earnings Yield % = (EPS ÷ Price per Share) × 100P/E = Price per Share ÷ EPSAlternative: Earnings Yield % = 100 ÷ (P/E)Spread (optional) = Earnings Yield % − Bond Yield %- Note: You can use trailing 12-month EPS or forward EPS.
Example Calculation (USD)
- P/E = 50.00 ÷ 3.00 = 16.67×
- Earnings Yield % = (3.00 ÷ 50.00) × 100 = 6.00%
- Spread vs Bond = 6.00 − 4.00 = +2.00%
How to Use This Calculator
- Enter Price per Share and EPS (trailing or forward).
- We compute P/E and Earnings Yield % instantly.
- Optionally add a bond yield to see the yield spread.
- Compare across stocks and time to judge relative value.
Tips to Interpret Earnings Yield
- Normalize EPS: Adjust for one offs for a cleaner read.
- Forward vs trailing: Forward EPS reflects expectations but may be optimistic.
- Sector context: Compare within the same industry.
- Pair with quality: ROE, cash flow, leverage, and growth matter.
- Cross-check with P/E: Earnings Yield is simply the inverse of P/E.
Educational content; not financial advice.
Benefits of Using Earnings Yield Calculator
Compare Returns
Evaluate stock earnings relative to its price efficiently.
Instant Calculation
Quickly determine earnings yield using price and EPS.
Easy for Everyone
Simple interface suitable for beginners and pros.
Accurate Metrics
Precise yield calculations for informed investment decisions.
Global Stocks Support
Works with stocks from multiple international exchanges.
Privacy Guaranteed
All data remains local; nothing is stored externally.
Frequently Asked Questions
What is earnings yield?
Earnings yield is EPS divided by the stock price, expressed as a percentage.
Why use earnings yield?
It helps compare investment returns with other assets like bonds.
Can it handle international stocks?
Yes, just enter price and earnings in your currency.
Is it beginner friendly?
Yes, it’s simple to use with clear outputs.
Can I calculate historical earnings yield?
Yes, enter past EPS and stock price for historical analysis.
Is my data safe?
All calculations happen locally; no data is shared.