Earnings Yield Mean Difference

Earnings Yield Mean Difference = Current Earnings Yield – 10 year average Earnings Yield

Earnings Yield is equal to EBIT divided by Enterprise Value.

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


How it works

For example assume the Earnings Yield Mean Difference = -5%

This means that the company currently has a 5% lower Earnings Yield (is more expensive) compared to its average Earnings Yield over the past 10 years.

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

 

How to use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes (Look for it under the Valuation heading)

 

How to select the companies

To find companies with the highest Earnings Yield Mean Difference value set the slider from 0% to 10%.

 

Remember

All ratios are calculated on a trailing 12 months (TTM) basis.

This means the last twelve months (not the company’s financial year) is compared to the same period in the past.

We do this to make sure that the screener data includes the latest, most up to date, financial results of the company.

 

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