How do you calculate Earnings Yield, EBIT/Enterprise Value?

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How do you calculate Earnings Yield, EBIT/Enterprise Value?

In the Little Book That Beat the Market, Joel Greenblatt mentions Earnings Yield, EBIT/Enterprise Value as a criteria for choosing stocks to buy. What is your take on how to second check the balance sheet of a particular company to see if you want to invest in that company?

2007-02-28 02:39:10 · 1 answers · asked by Anonymous in Business & Finance ➔ Investing

1 answers

Stock yield = Dividend yield + Capital gains yield
ie; Dividend/Market Price + (Price today - Price bought)/Price bought. This gives the stock yield.

2007-02-28 04:25:48 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋