New to this? Read the plain English guide first.
Turn the P/E ratio upside down to see profit as a percent of price.
Earnings yield shows how much profit a company earns for each dollar of share price. It is the flip side of the P/E ratio, so it is easy to compare with interest rates and other yields.
Earnings yield = earnings per share divided by share price, times 100.
Want the full story with a worked example? Read the Earnings Yield guide, or see all of our free calculators. For learning only, not advice.