Earnings yield method?Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Earnings yield method?This topic has 3 replies, 2 voices, and was last updated 11 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts November 29, 2013 at 6:02 pm #148513 jemma242MemberTopics: 81Replies: 96☆☆what is the earnings yield method? and how do you calculate it?Thanks Jemma November 29, 2013 at 6:24 pm #148516 John MoffatKeymasterTopics: 57Replies: 54487☆☆☆☆☆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. November 29, 2013 at 8:04 pm #148542 jemma242MemberTopics: 81Replies: 96☆☆thank you!! November 30, 2013 at 2:39 pm #148612 John MoffatKeymasterTopics: 57Replies: 54487☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In