Earnings yield: related pages

Share price divided by earnings per share.

Total dividends paid per share over the course of a year ÷ share price.

The rate of return that can be obtained with certainty; the yield on government bonds.

The difference between the expected rate of return of the stock market and the risk free rate of return; the amount of extra return investors demand for taking the extra risk of equity investment.

DCF valuation

The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.

EV/EBITDA

Enterprise value divided by earnings before interest tax depreciation and amortisation.

Price/cashflow

Share price ÷ (cash flow ÷ no of shares in issue).

Price/sales

market cap ÷ sales.

Sector PE

The PE ratio of an entire market. Total market cap ÷total net profits.

Sum of parts valuation

The valuation of a company by separately valuing different parts of it so different valuation methods or ratios can be applied to disparate businesses.

Valuation ratios

A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.