Switch to:
Wal-Mart Stores Inc  (NYSE:WMT) Earnings Yield %: 4.27% (As of today)

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, the stock price of Wal-Mart Stores Inc is $97.47. Wal-Mart Stores Inc's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2017 was $4.16. Therefore, Wal-Mart Stores Inc's earnings yield of today is 4.27%.

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) %. Wal-Mart Stores Inc's Forward Rate of Return (Yacktman) % for the quarter that ended in Jul. 2017 was 5.48%. 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.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Wal-Mart Stores Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Earnings Yield % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Wal-Mart Stores Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Earnings Yield % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Calculation

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

Wal-Mart Stores Inc's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=4.16/97.47
=4.27 %

Wal-Mart Stores Inc's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2017 was 0.98 (Oct. 2016 ) + 1.22 (Jan. 2017 ) + 1 (Apr. 2017 ) + 0.96 (Jul. 2017 ) = $4.16 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap (M)

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


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) %.

c

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.


Related Terms


Headlines

From the Internet

WMT
Wal Mart Please Stop Madness Buy

- Seekingalpha 2017-11-17 14:59:23

WMT
Time for High Beta & Momentum ETFs?

- Zacks 2017-11-17 12:23:00

WMT
Wal-Mart preorders 15 Tesla trucks for U.S., Canada

- MarketWatch 2017-11-17 12:16:00

WMT
Wal-Mart planning to test Tesla's truck: report

- MarketWatch 2017-11-17 11:42:00

WMT
Why Wal-Mart Is Getting a Dressing-Down

- Barron's 2017-11-17 11:14:00

WMT
Stock Market News For Nov 17, 2017

- Zacks 2017-11-17 09:09:00

WMT
Wal-Mart Is Holding Its Own Against Amazon

- Barron's 2017-11-17 09:06:27

WMT
Wal Mart Amazon Nervous

- Seekingalpha 2017-11-17 08:08:28

WMT
Thursday Wal Mart Cisco Cramers Mad Money 11 16 17

- Seekingalpha 2017-11-17 07:43:52

WMT
Exploding E Commerce Sales Drive Wal Mart Time High

- Seekingalpha 2017-11-17 02:57:14

WMT
Wal Mart Street Picks Sides Retail

- Seekingalpha 2017-11-16 20:22:55

WMT
PPG Industries: Cramer's Top Takeaways

- theStreet 2017-11-16 19:29:00

WMT
What Happened in the Stock Market Today

- Fool 2017-11-16 17:04:00

WMT
Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:42:00

WMT
Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:37:00

WMT
Has Wal-Mart Won the Retail Wars?

- Barron's 2017-11-16 14:35:55

WMT
Despite iPhone, Best Buy Continues to Struggle

- theStreet 2017-11-16 12:49:00

WMT
Wal-Mart Ready to Rumble With Amazon

- Barron's 2017-11-16 12:25:21

WMT
Why Wal-Mart Stock Was Soaring Today

- Fool 2017-11-16 12:14:00

WMT
New ETF is a bet on the death of retail stores

- MarketWatch 2017-11-16 11:56:00

WMT
Amazon Go May Coming May Help Stock

- Seekingalpha 2017-11-16 09:49:54

WMT
Walmart Now Pushes Clicks, Not Bricks

- theStreet 2017-11-16 09:49:00

WMT
A Wrap-Up Of The Latest Economic Data

- Zacks 2017-11-16 09:40:00

WMT
U.S. stocks open higher after two days of losses

- MarketWatch 2017-11-16 09:32:00

WMT
Stock Market News For Nov 16, 2017

- Zacks 2017-11-16 09:13:00

WMT
Asda sales up; parent warns on challenging market

- MarketWatch 2017-11-16 08:41:00

WMT
Wal-Mart, Cisco stock rallies give big boost to Dow

- MarketWatch 2017-11-16 07:51:00

WMT
This Is the Wrong Move for Wal-Mart

- Fool 2017-11-16 06:05:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK