Earnings yield is the percentage a company made per share on an annual basis.The earninings yields is calcualted by taking the earning per share (EPS) and dividing it by the current market price.
Earnings Yield = EPS/Price
Why is earnings yield important?
The earnings yield can assist investors in comparing potential returns between two equities. Growth stocks will generally have a lower earnings yield, and value stocks tend to have much higher earnings yields.