Earnings Yield - EBIT/EV

The Earnings Yield is a measure of how much a company earns relative to its Enterprise Value. It is defined as the Earnings Before Interest and Tax divided by the Enterprise Value. This figure is computed from last year’s accounts.

Stockopedia explains Earnings Yield

As defined in the Little Book that Beats the Market, the earnings yield compares the profit generated with the market's valuation of the company. It is defined as operating profit divided by enterprise value. Many refer to it as the EBIT/EV (Earnings before interest and tax / Enterprise Value). You can read more about this here.

This penalises companies that carry a lot of debt and little cash, and rewards firms with a lot of cash - something that is not reflected in a simple PE Ratio.

In the case of negative Enterprise Value stocks, we replace the Enterprise Value with a 1 to avoid having a negative denominator (the alternative would be to print n/a but these stocks are obviously good from an Earnings Yield perspective).

Ranks: High to LowUnit: %Available in screenerAvailable as Table Column

The 5 highest Earnings Yield Stocks in the Market

TickerNameEarnings YieldStockRank™
TYO:8306Mitsubishi UFJ Financial148985700.0087
KOSDAQ:032190DAOU DATA131132915.4650
KRX:023590Daou Technology127213508.2568
TYO:8316Sumitomo Mitsui Financial92958800.0095
TYO:6178Japan Post Holdings Co83515800.0081