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P/E vs. Earnings Yield The earnings yield is simply the inverse of the P/E ratio. It’s calculated by dividing a company’s earnings per share (EPS) by its share price—or more simply, 1 divided by the P/E—and is usually expressed as a percentage. For example, if a stock has a P/E of 15, the earnings yield would be 0.0667 (1 ÷ 15), or 6.67%.
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