Power Solutions (TSE:4450) Earnings Yield %: 2.97% (As of Jul. 07, 2026)


TSE:4450 Power Solutions Ltd TSE:4450
86 GF Score
Price 円2,050.00
GF Value 円1,763.64
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Power Solutions Earnings Yield %?

Power Solutions TSE:4450 +2.81% 86 Earnings Yield % is 2.97% as of Jul. 07, 2026. GuruFocus rates TSE:4450 with a GF Score™ of 86/100 and a GF Value™ of 円1,763.64 (Modestly Overvalued). The stock has 1 warning sign investors should review.

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 (2026-07-07), the stock price of Power Solutions is 円2050.00. Power Solutions's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was 円60.91. Therefore, Power Solutions's earnings yield of today is 2.97%.

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) %. Power Solutions's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2025 was 22.99%. 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.


Power Solutions  (TSE:4450) 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.


Power Solutions Earnings Yield % Related Terms

TSE:4450
86GF Score
Power Solutions Ltd TSE:4450
Earnings Yield % is just one metric. See GF Score™, valuation, warning signs, and more.
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Power Solutions Earnings Yield % Calculation

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

Power Solutions's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=60.910/2050.00
=2.97 %

Power Solutions's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was 円60.910 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.

Frequently Asked Questions Learn more about Earnings Yield % →
What does a Earnings Yield % of 2.97% mean?
Power Solutions (TSE:4450) has a Earnings Yield % of 2.97% as of Jul. 07, 2026. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Power Solutions and its competitors.
Is Power Solutions' Earnings Yield % too high?
Power Solutions' current Earnings Yield % is 2.97%. Overall, Power Solutions has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power Solutions' Earnings Yield % compare to IBM and ACN?
Power Solutions' Earnings Yield % of 2.97% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield % for a Software company?
A good Earnings Yield % depends on the Software industry context. However, Earnings Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield % mean?
A high Earnings Yield % can signal that a stock is expensive relative to its fundamentals. Earnings Yield equals per-share earnings divided by share price. It is the inverse of the price-earnings ratio. View historical data on Power Solutions and its competitors. Power Solutions's current Earnings Yield % is 2.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Solutions stock overvalued right now?
Based on GuruFocus' analysis, Power Solutions (TSE:4450) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,763.64, compared to a current price of 円2,050.00 — trading 16.2% above its estimated fair value. The current Earnings Yield % is 2.97%. Power Solutions' overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield % calculated?
Earnings Yield % is calculated from a company's financial statements. For Power Solutions (TSE:4450), the current Earnings Yield % is 2.97% as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Power Solutions (TSE:4450) Overvalued in 2026?

Based on GuruFocus' analysis, Power Solutions stock appears to be overvalued. The current stock price of 円2,050.00 is trading 16.2% above its estimated GF Value™ of 円1,763.64. GuruFocus considers Power Solutions to be Modestly Overvalued.

Key valuation signals for TSE:4450:

  • Earnings Yield %: 2.97%
  • GF Value™: 円1,763.64 vs. price of 円2,050.00 (16.2% above fair value)
  • GF Score™: 86/100 with 1 warning sign

No single metric tells the full story. See the TSE:4450 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Power Solutions Business Description

Address 1-13-5 Kudankita, Chiyoda-ku, Tokyo, JPN, 102-0073
Power Solutions Ltd specializes in corporate information technology activities. It is mainly engaged in the development, operation, and maintenance of business consulting systems and the outsourcing of business for asset management companies and other financial institutions.
86GF Score

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Earnings Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,050.00
Price
円1,763.64
GF Value