Difference between revisions of "Earnings Yield"
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| − | Earnings Yield | + | Earnings Yield is defined to be the |
| + | |||
| + | <math>\frac{Earnings Per Share}{P_0}</math> | ||
| + | |||
| + | This is only a valid basis if: | ||
| + | 1) EPS = DPS | ||
| + | 2) g = 0 | ||
| + | |||
| + | It is NOT an OK basis for any company that is still growing. | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:24, 27 August 2020
Earnings Yield is defined to be the
This is only a valid basis if: 1) EPS = DPS 2) g = 0
It is NOT an OK basis for any company that is still growing.
