Earnings yield

The inverse of the P/E ratio: yearly profit as a percentage of the share price.

Earnings yield = earnings per share ÷ share price (= 1 ÷ P/E)

Earnings yield flips the P/E ratio into a percentage. A P/E of 20 is a 5% earnings yield. Expressed this way it can be set against bond yields or a required return.

Where it misleads. Companies do not pay out all their earnings, and earnings are not cash. The free cash flow yield and the dividend yield show what actually comes out of the business.

Earnings yield across the S&P 500 today

471 companies with a meaningful value, as of Oct 11, 2026.

Median3.9%
Lower quartile2.7%
Upper quartile5.8%

Median earnings yield by sector

S&P 500 companies only. Sectors differ a lot, so compare a company with its own sector first.

Questions

What is Earnings yield?

The inverse of the P/E ratio: yearly profit as a percentage of the share price.

How is Earnings yield calculated?

Earnings yield = earnings per share ÷ share price (= 1 ÷ P/E).

What is a normal earnings yield?

Across 471 S&P 500 companies, the median is 3.9%; the middle half sits between 2.7% and 5.8%. It varies a lot by sector.

Live figures from the latest prices and SEC filings. Information only, not investment advice. Updated October 9, 2026.