GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Intermediate Capital Group PLC (OTCPK:ICGUF) » Definitions » Earnings Yield %

ICGUF (Intermediate Capital Group) Earnings Yield % : 6.49% (As of Dec. 13, 2024)


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

What is Intermediate Capital Group 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 (2024-12-13), the stock price of Intermediate Capital Group is $27.1365. Intermediate Capital Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $1.76. Therefore, Intermediate Capital Group's earnings yield of today is 6.49%.

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) %. Intermediate Capital Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2024 was 0.00%. 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.


Intermediate Capital Group Earnings Yield % Calculation

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

Intermediate Capital Group's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=1.760/27.1365
=6.49 %

For company reported semi-annually, Intermediate Capital Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1.760 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.


Intermediate Capital Group  (OTCPK:ICGUF) 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.


Intermediate Capital Group Earnings Yield % Related Terms

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


Intermediate Capital Group Business Description

Traded in Other Exchanges
Address
Procession House, 55 Ludgate Hill, New Bridge Street, London, GBR, EC4M 7JW
Intermediate Capital Group PLC is an asset management firm that divides its business model into two segments: a fund management company and an investment company. The fund management company is the operating business of the group that sources and manages investments in the European, Asia-Pacific, and North American markets. It allocates capital to corporate investments, capital market investments, real assets, and private equity secondary market transactions. The investment company co-invests alongside third parties in new or existing funds. Its plan emphasizes a growth-oriented, activist, and long-term approach to investing. It generates revenue through interest income and secondarily through management fees.