Earnings Yield
factor.formula
Profitability:
In the formula, the profitability ratio is calculated by dividing the company's net profit attributable to the parent company (TTM) for the last 12 months by the company's total market value.
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The Trailing Twelve Months Net Profit Attributable to Parent Company Owners reflects the company's profitability in the past year. Using TTM data can more accurately reflect the company's recent operating conditions.
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Market Capitalization represents the total market value of a company's stock, calculated by multiplying the current stock price by the total number of shares issued by the company. Market capitalization reflects the market's assessment of the company's overall value.
factor.explanation
The profit rate is the inverse of the price-earnings ratio and is a commonly used indicator of value investment. It indicates how much profit investors can get for every 1 yuan of market value they invest. Stocks with higher profit rates are generally considered to have higher investment value because it means that the company has generated higher profits at a relatively low market valuation. Investors can use the profit rate indicator to screen out stocks that may be undervalued by the market and include them in their investment portfolios. In practical applications, the profit rate can be compared with the industry average or combined with other value indicators to more comprehensively evaluate the company's investment value.