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Citizen Life Insurance Co (XNEP:CLI) Earnings Yield % : % (As of Jun. 11, 2024)


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What is Citizen Life Insurance 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 (2024-06-11), the stock price of Citizen Life Insurance Co is NPR471.60. Citizen Life Insurance Co does not have enough years/quarters to calculate its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in . 20. Therefore, GuruFocus does not calculate Citizen Life Insurance Co's earnings yield at this moment.

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) %. Citizen Life Insurance Co's Forward Rate of Return (Yacktman) % for the quarter that ended in . 20 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.


Citizen Life Insurance Co Earnings Yield % Calculation

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

Citizen Life Insurance Co's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=/471.60
= %

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.


Citizen Life Insurance Co  (XNEP:CLI) 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.


Citizen Life Insurance Co Earnings Yield % Related Terms

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Citizen Life Insurance Co (XNEP:CLI) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
LS Complex, Thapathali, Kathmandu, NPL
Citizen Life Insurance Co Ltd is one of the fastest-growing life insurance companies in Nepal. It is entirely focused on customer satisfaction and delivering value to its clients/policyholders through innovative insurance plans designed according to the societal needs and also provides an impeccable service. The company brings to its customers a wide range of protection solutions to help secure their family's future. Its products are designed to: Provide financial support for child's education, Provide wealth with protection solutions, Provide health and wellness solutions, and Provide retirement solutions and savings.

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