Earnings Yield Calculator: EPS as a Share of Share Price
Work out a stock's earnings yield — the inverse of the P/E ratio, and the only way to compare a stock's earnings against a bond's coupon on the same percentage scale.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Earnings yield | Price-side share |
|---|---|---|
| $2.50 EPS · $50 price | 5.00% | 95.00% |
| $1.20 EPS · $30 price | 4.00% | 96.00% |
| $5.00 EPS · $80 price | 6.25% | 93.75% |
| $0.80 EPS · $40 price | 2.00% | 98.00% |
How This Calculator Works
Enter the earnings per share (EPS) and the current share price. The calculator divides EPS by price and multiplies by 100 to give the earnings yield. A P/E of 20 corresponds to an earnings yield of 5%; the calculator does that conversion for you.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A stock with $2.50 EPS trading at $50 has a 5% earnings yield — investors are getting $5 of company earnings for every $100 invested. Compared against a Treasury yield of 4%, the equity 'pays' a 1-point premium for the extra risk and growth potential.
Key Insight
Earnings yield is what Warren Buffett refers to when he calls the S&P 500 a 'bond with a coupon that grows over time'. A 5% earnings yield on a stock is broadly comparable to a 5% bond, except the equity's coupon should grow with earnings. The 'equity risk premium' watched by macro investors is the earnings yield minus the 10-year Treasury yield.
Frequently Asked Questions
How is earnings yield calculated?
Divide earnings per share by share price, then multiply by 100. A $2.50 EPS on a $50 share is a 5% earnings yield.
What is the relationship to P/E?
Exact inverse. A P/E of 20 is an earnings yield of 5% (1/20 × 100). A P/E of 10 is an earnings yield of 10%. The lower the P/E, the higher the earnings yield.
Why use earnings yield instead of P/E?
Earnings yield is on the same percentage scale as bond yields, savings rates, and other returns. P/E is a multiple — useful for valuation but harder to compare across asset classes directly.
What is the equity risk premium?
Earnings yield minus the long-term Treasury yield. Macro investors watch it as a rough indicator of whether equities are cheap or expensive versus risk-free returns. Higher premium suggests equities are cheaper relative to bonds.
Does earnings yield include dividends?
No. Earnings yield uses all of the company's earnings; only the portion paid as dividends shows up in dividend yield. The difference — retained earnings — funds growth and buybacks.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources.
Methodology & Review
The earnings yield is earnings per share divided by share price, multiplied by 100. It is exactly the inverse of the P/E ratio (1/P/E × 100) and lets you compare equity earnings against bond yields on the same percentage basis.
Written by Ugo Candido · Last updated May 17, 2026.