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PT Bank Rakyat Indonesia (Persero) Tbk (PT Bank Rakyat Indonesia (Persero) Tbk) Earnings Yield % : 8.66% (As of Apr. 28, 2024)


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What is PT Bank Rakyat Indonesia (Persero) Tbk Earnings Yield %?

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 (2024-04-28), the stock price of PT Bank Rakyat Indonesia (Persero) Tbk is $15.03. PT Bank Rakyat Indonesia (Persero) Tbk's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $1.30. Therefore, PT Bank Rakyat Indonesia (Persero) Tbk's earnings yield of today is 8.66%.

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) %. PT Bank Rakyat Indonesia (Persero) Tbk's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 15.47%. 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.


PT Bank Rakyat Indonesia (Persero) Tbk Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

PT Bank Rakyat Indonesia (Persero) Tbk's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=1.301/15.03
=8.66 %

PT Bank Rakyat Indonesia (Persero) Tbk's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.301 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:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.


PT Bank Rakyat Indonesia (Persero) Tbk  (OTCPK:BKRKY) 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.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

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.


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PT Bank Rakyat Indonesia (Persero) Tbk (PT Bank Rakyat Indonesia (Persero) Tbk) Business Description

Traded in Other Exchanges
Address
Jalan Jenderal Sudirman No. 44 - 46, Gedung BRI I, 20th Floor, Jakarta, IDN, 10210
PT Bank Rakyat Indonesia (Persero) Tbk is Indonesia's oldest commercial bank, and operates primarily within the country's borders, with some exposure to North Asia. BRI focuses on providing and tailoring banking services to micro, small, and medium enterprises. Its segments are micro, retail, corporate, and others. The company emphasizes integrating financial technology into its various platforms to create ease of access for its customer base. Its core business services include collecting customer deposits, loan disbursement, issuing promissory notes and loan agreements, and collateralization of assets. Its loan products include working capital loans for corporate and commercial customers, and mortgages for consumer customers.