Earnings Yield Explanation Video

Earnings Yield Explanation Video

Last week I posted Part 1 of the Case Study of Armanino Foods (AMNF) where I explained how I did preliminary analysis on the company.

At the end of the video I talked about relative valuations like EV/EBIT and EV/FCF.  And the inverse of those valuations which is earnings yield.  But I didn’t explain what either meant.

To fix this, on Friday I posted Why The P/E Ratio Is Useless – And How To Calculate EV.  In the post I explain why P/E is a useless metric to rely on for long time value investors.  Show how to calculate EV, EV/EBIT, and EV/FCF.  And tell you what everything means.

To finish up explaining everything about part 1 of the case study, today’s post is all about earnings yield…

In the 6:08 video below I explain why earnings yield is important.  How to calculate it without using P/E.  And what yield you should expect when evaluating companies.

Let me know your thoughts on earnings yield in the comments below.  And please let me know how I can improve future video content.

***

Don’t forget, if you want to receive two free gifts that will help you evaluate companies faster.  Get all future blog posts. Get future case study information first.  And be entered to win a hard copy of: The Snowball – Warren Buffett and the Business of Life and a $50 AMEX gift card. Sign up for the Value Investing Journey newsletter here.