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Sir i want to know about earnings yield method how does it work the formula and relationship between price earnings there are alot of questions in the kit about it
I wasnt able to post a question yesterday i typed it 2 or 3 times ignore this if you already answered
ThanksThe PE ratio is the market value per share divided by the earnings per share.
The earnings yield is the earnings per share divided by the market value per share (expressed as a %’age).
So to get the MV you either multiply the earnings by the PE ratio, or alternatively you divide the earnings by the earnings yield.
The earnings yield = 1/PE ratio (expressed as a %).
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