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Hi Sir,
under what chapter can I check this? I had been answering the Phobis Co under BPP and encountered this.
It is the same logic as PE basis, but whereas the PE ratio is market value / earnings, the earnings yield is earnings / market value. (So the earnings yield is equal to 1 / PE ratio)
I really cannot remember whether I mention earnings yield in the lectures or not, because it is revision from Paper FA (was F3) and is less commonly used than the PE ratio.
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