Definition

Earnings yield

Earnings per share divided by the share price — the P/E ratio turned upside down, read as a yield. It restates a valuation multiple in the same units as a bond coupon, which is why value disciplines quote it: what the company earns per dollar paid for the share, before any judgment about growth or risk.

Formula

Earnings yield = Diluted EPS ÷ Share price = 1 ÷ (P/E)

Drivers — what actually moves it

Earnings: the filed numerator — diluted EPS from the income statement.
Price: a market quantity no filing carries; it moves the yield daily while EPS moves quarterly.
Cyclicality: peak-cycle earnings flatter the yield exactly when they are least durable.

Where to find it in the filing

Income statement (diluted EPS); the price is market data. 10-K Item 8 — diluted earnings per share at the bottom of the income statement. The price input is not in any filing; Echelon names it missing rather than faking one.

XBRL concepts Echelon grounds to: EarningsPerShareDiluted

Sector caveats — where this breaks

A loss year makes the yield negative and the framing meaningless — refuse the read rather than force it.
Comparing yields across companies without adjusting for growth expectations rediscovers the P/E debate in different units.

Drill it in a live lesson P/E ratio Diluted EPS

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.