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Jyoti Bikas Bank (XNEP:JBBL) Earnings Yield % : 2.00% (As of Apr. 24, 2025)


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What is Jyoti Bikas Bank 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 (2025-04-24), the stock price of Jyoti Bikas Bank is NPR325.84. Jyoti Bikas Bank's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was NPR6.51. Therefore, Jyoti Bikas Bank's earnings yield of today is 2.00%.

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) %. Jyoti Bikas Bank's Forward Rate of Return (Yacktman) % for the quarter that ended in Oct. 2024 was 8.49%. 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.


Jyoti Bikas Bank Earnings Yield % Calculation

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

Jyoti Bikas Bank's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=6.505/325.84
=2.00 %

Jyoti Bikas Bank's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was NPR6.505 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.


Jyoti Bikas Bank  (XNEP:JBBL) 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.


Jyoti Bikas Bank Earnings Yield % Related Terms

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Jyoti Bikas Bank Business Description

Traded in Other Exchanges
N/A
Address
Kamalpokhari, Kathmandu, NPL
Jyoti Bikas Bank Ltd provides standard banking services in Nepal. The company focuses on financing the development of hydropower and infrastructure and providing banking facilities to the general public for various purposes. The Bank operates in the following segments: Core Banking, Micro Finance, Treasury, and Digital Banking & Others. The majority of the revenue is generated from the Core Banking segment. All the revenues come from the domestic market.

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