Earnings Yield Mean Difference

Earnings Yield (EY) Mean Difference = Current Earnings Yield – 10 year average Earnings Yield

This indicator tells you how a company is currently valued in terms of EY compared to its average EY over the past 10 years.

For example:
Earnings Yield (EY) Mean Difference = 15% - 20% = -5%
This means that the company currently has a lower earnings yield (is more expensive) compared to its average valuation over the past 10 years.

Thus the higher the EY Mean Difference value the more undervalued the company currently is compared to the past.