Earnings Yield Explanation Video
In this episode, we talk about earnings yield explanation.
Last week I posted Part 1 of the Case Study of Armanino Foods (AMNF) where I explained how I did a preliminary analysis of 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 is earnings yield. But I didn’t explain what either meant.
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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.
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