- This topic has 3 replies, 2 voices, and was last updated 12 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Earnings yield method?
what is the earnings yield method? and how do you calculate it?
Thanks
Jemma
The earnings yield method is effectively the same as using the P/E ratio.
Whereas the P/E ratio is the market value/EPS, the earnings yield is the EPS/market value x 100%.
So to use this for valuation, you use the earnings yield of similar companies and apply it to the earnings of the company that we are considering.
thank you!!
You are welcome 🙂
