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Colbun (XSGO:COLBUN) Earnings Yield % : 15.30% (As of May. 01, 2024)


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What is Colbun 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 (2024-05-01), the stock price of Colbun is CLP123.29. Colbun's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was CLP18.86. Therefore, Colbun's earnings yield of today is 15.30%.

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) %. Colbun's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 24.86%. 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.


Colbun Earnings Yield % Calculation

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

Colbun's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=18.860/123.29
=15.30 %

Colbun's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was CLP18.860 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.


Colbun  (XSGO:COLBUN) 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.


Colbun Earnings Yield % Related Terms

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Colbun (XSGO:COLBUN) Business Description

Traded in Other Exchanges
N/A
Address
Avenida Apoquindo 4775, Piso 11, Santiago, CHL
Colbun SA is a Chilean origin utility company engaged in the electric power generation, transmission and distribution using a diverse field of natural energy resources. The company supplies energy to 18 large customers, among which 15 are regulated customers and three are free or industrial customers such as mining companies, transport services, and water treatment plants. Colbun owns and operates thermoelectric power stations and hydroelectric and hydro run-of-the-river power plants. It operates 23 power plants in Chile and one in Peru, through which it has a total installed capacity of around 3,852 MW.

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