What does profitability mean? Earnings yield is an important valuation method of stock valuation, which can help us select more excellent corporate stocks. How is the profitability calculated? Let's study together.
Earnings yield is a derivative indicator of P/E ratio, called EP for short. Earnings yield is a valuation index commonly used by Graham. To measure the value of stocks from the perspective of buying companies, it represents how much yield a company can bring to us if we buy all of it. Calculation formula of profitability:
盈利收益率=公司盈利/公司市值
EP=E/P
比如一个公司的盈利是1亿，这个公司的市值是8亿。那么它的盈利收益率就是1/8=125.%。那么12.5%的盈利收益率到底代表什么意思呢？它代表买下这个公司需要花费8亿，之后每年公司会赚取盈利，给我们带来的收益率为12.5%。
The formula for calculating the profitability of the index:
指数的盈利收益率=指数所有成分股的盈利之和/指数所有成分股的市值之和
所以从公式中可以看出盈利收益率和市盈率是互为倒数关系，盈利收益率=1/市盈率。
对于同一个品种来说，盈利收益率越高投资价值越高。比如说上证红利指数基金盈利收益率=11%是的投资价值要大于盈利收益率=10%时的投资价值。
