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What is Earnings Yield: Throwback Thursday
This Throwback Thursday post is about what is Earnings Yield. This is one of my top-viewed free training videos so far.
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Before I talk about Part 1 of the Case Study of Armanino Foods (AMNF) where I explained how I did a preliminary analysis of the company.
At the end of the video, I talked about relative valuations like EV/EBIT and EV/FCF. And the inverse of those valuations is earnings yield. But I didn’t explain what either meant.
To fix this, on Friday I posted Why The P/E Ratio Is Useless – And How To Calculate EV. In the post, I explain why P/E is a useless metric to rely on for long time value investors. Show how to calculate EV, EV/EBIT, and EV/FCF. And tell you what everything means.
To finish up explaining everything about part 1 of the case study, today’s post is all about earnings yield…
In the 6:08 video below I explain why earnings yield is important. How to calculate it without using P/E. And what yield you should expect when evaluating companies.
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Watch this episode on our YouTube channel.
Let me know your thoughts on earnings yield in the comments below. And please let me know how I can improve future video content.
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