GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Match Group Inc (LTS:0JZ7) » Definitions » Earnings Yield %

Match Group (LTS:0JZ7) Earnings Yield % : 7.54% (As of May. 22, 2024)


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

What is Match 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 (2024-05-22), the stock price of Match Group is $30.50. Match Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $2.30. Therefore, Match Group's earnings yield of today is 7.54%.

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) %. Match Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was 2.62%. 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.


Match Group Earnings Yield % Calculation

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

Match Group's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=2.300/30.50
=7.54 %

Match Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.300 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.


Match Group  (LTS:0JZ7) 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.


Match Group Earnings Yield % Related Terms

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


Match Group (LTS:0JZ7) Business Description

Address
8750 North Central Expressway, Suite 1400, Dallas, TX, USA, 75231
Match Group is a provider of online dating products. The firm became public in 2015 and was more than 80% owned by IAC/InterActiveCorp until IAC spun it off in 2020. The company has a vast portfolio of different online dating service providers, including Tinder, Hinge, BLK, Chispa, Match.com, OkCupid, PlentyOfFish, and Meetic. Match Group has more than 45 brands of online dating sites and/or apps, from which it generates user fee revenue (95%) and advertising revenue (5%).

Match Group (LTS:0JZ7) Headlines

No Headlines