The earnings yield of a company can be calculated by dividing the earnings per share (EPS) by the current market price of the share.

The result can be multiplied by 100 to make a percentage, which can then be compared to interest rates and yields of other investments. Earnings yield is the inverse of the Price to earnings ratio (PER).

For example, suppose company XYZ has a market price of 210 cents per share, and earnings per share of 15 cents per share, the earnings yield would be:

	EY = EPS / PRICE
           = 15  / 210
           = 0.0714
	   = 7.14%

A higher earnings yield is better, ceteris paribus.