Earnings Yield method

Is this different from PE ratio method?

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.

Thanks Sir, will look for it

You are welcome :-)