The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
As of today (2024-04-25), the stock price of HomeAway is $31.38.
HomeAway's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2015 was $0.06. Therefore, HomeAway's earnings yield of today is 0.20%.
The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. HomeAway's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2015 was 3.92%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
HomeAway Earnings Yield % Calculation
Earnings yield is the reciprocal of the P/E Ratio.
HomeAway's Earnings Yield for today is calculated as
HomeAway's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.062 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
The earnings in the calculation is the Trailing Twelve Months earnings.
HomeAway (NAS:AWAY) Earnings Yield % Explanation
If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.
If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.
Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.
Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.
Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.
HomeAway Earnings Yield % Related Terms
Thank you for viewing the detailed overview of HomeAway's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
HomeAway, Inc., was incorporated in 2004 as CEH Holdings, Inc. in the State of Delaware. In 2006, the Company changed its name to HomeAway, Inc. The Company operates as an online marketplace for the vacation rental industry. Vacation rentals are fully furnished, privately owned residential properties, including homes, condominiums, villas and cabins that can be rented on a nightly, weekly or monthly basis. The Company's marketplace brings together millions of travelers seeking vacation rentals online with hundreds of thousands of owners and managers of vacation rental properties located in over 145 countries around the world. Its ambition is to make every vacation rental in the world available to every traveler in the world through its online marketplace. The Company's Products and Services includes Paid Listings. Paid listings appear in search results on websites when travelers search for vacation rentals based on location, type of property, size or other characteristics. A paid listing provides the property owner or manager with a set of tools for managing an availability calendar, reservations, inquiries and the content of the listing; Transaction-Based Listings: The Company offers property managers with large inventories of vacation rentals the opportunity to post listings for no initial up-front fees and, instead, charge fees based on the number of inquiries and online reservations that result from their listing on its websites; Property Management Software: Property managers can use Company's enterprise software solutions to manage their businesses, customers and properties. It provides software solutions to property managers under the brand names Escapia, PropertyPlus, V12, Entech and First Resort and offer software tailored to professional. Its strategies to achieve goal includes: Increase the Size of Marketplace by Providing the Online Experience: It intends to build on its market scale by providing the online experience for travelers, property owners and managers. For travelers, the Company will leverage the scale and scope of the current listings on marketplace, the latest web technologies and own innovations in user interface, visual design, features and functionality; Bring More Choice and Value to Property Owners, Managers and Traveler. It derives its revenue from paid listings from its property owners and managers. The Company's customers generally pay for their listings at the beginning of the listing term, and revenue is recognized monthly over the term of the listing, which is generally one year.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AWAY has been successfully added to your