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Luz Del SurA (LIM:LUSURC1) Earnings Yield % : 11.63% (As of May. 08, 2025)


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What is Luz Del SurA 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 (2025-05-08), the stock price of Luz Del SurA is S/.13.10. Luz Del SurA's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was S/.1.52. Therefore, Luz Del SurA's earnings yield of today is 11.63%.

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) %. Luz Del SurA's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 11.32%. 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.


Luz Del SurA Earnings Yield % Calculation

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

Luz Del SurA's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=1.524/13.10
=11.63 %

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Luz Del SurA's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was S/.1.524 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.


Luz Del SurA  (LIM:LUSURC1) 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.


Luz Del SurA Earnings Yield % Related Terms

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Luz Del SurA Business Description

Traded in Other Exchanges
N/A
Address
Av Canaval y Moreyra 380, Piso 17, San Isidro, Lima, PER
Luz Del Sur SAA is a Peru-based electric power distribution company which provides service to approximately 900 thousand clients. The company also provides other services such as maintenance of internal installations and electrical networks, as well as energy diagnoses. It also focuses on expansion and improvement of the electrical grid, construction of transmission and distribution substations, and purchase of machinery and equipment.

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