Earnings Yield or EBIT to EV

Earnings Yield = Operating Income or earnings before interest and taxes (EBIT) / Enterprise Value

 

What if Enterprise Value is negative?

If Enterprise Value is negative a default value of 1 is used. If not Earnings Yield ratio would be negative.

This way profitable companies with a negative Enterprise Value does not get unfairly excluded.

See separate definition of Enterprise Value

 

Just how good is this ratio?

Here is more information on just how much earnings yield can help your investment returns: A simple ratio beats the world’s best value funds

Also take a look at the Strategies page where you can get back test information on a lot of investment strategies that use Earnings Yield

 

How you can use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes

 

How to select the highest Earnings Yield companies

To find companies with the highest Earnings Yield in the screener set the slider from 0% to 10%.

 

Click here to start using Earnings Yield or EBIT to EV in your portfolio NOW!