GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Eagle Point Income Co Inc (NYSE:EIC) » Definitions » Earnings Yield %

EIC (Eagle Pointome Co) Earnings Yield % : 20.10% (As of Apr. 17, 2025)


View and export this data going back to 1990. Start your Free Trial

What is Eagle Pointome Co 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 (2025-04-17), the stock price of Eagle Pointome Co is $13.98. Eagle Pointome Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2024 was $2.81. Therefore, Eagle Pointome Co's earnings yield of today is 20.10%.

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) %. Eagle Pointome Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2024 was -34.04%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five 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.


Eagle Pointome Co Earnings Yield % Calculation

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

Eagle Pointome Co's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=2.810/13.98
=20.10 %

For company reported semi-annually, Eagle Pointome Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $2.810 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.


Eagle Pointome Co  (NYSE:EIC) 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.


Eagle Pointome Co Earnings Yield % Related Terms

Thank you for viewing the detailed overview of Eagle Pointome Co's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.


Eagle Pointome Co Business Description

Traded in Other Exchanges
N/A
Address
600 Steamboat Road, Suite 202, Greenwich, CT, USA, 06830
Eagle Point Income Co Inc is a closed-end management investment company. Its primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company seeks to achieve its investment objectives by investing in junior debt tranches of collateralized loan obligations, or "CLOs," that are collateralized by a portfolio consisting of below-investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.