Calculate the earnings yield ratio, a valuation ratio that measures the earnings per share relative to the market price per share.

The earnings yield ratio is a valuation metric that provides insights into how much a company’s earnings contribute to its stock price. It compares the earnings per share to the market price per share, helping investors understand the earnings potential of the company relative to its current market value

The formula is as follows:

\[\text{Earnings Yield Ratio} = \text{Earnings per Share} / \text{Share Price}\]

Also known as: E/P ratio, inverse PE ratio.

Earnings Yield in Python or via the MCP

Install the Finance Toolkit with:

pip install financetoolkit -U

Then call get_earnings_yield as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(
    ["F", "GM", "TM"],
    api_key="FINANCIAL_MODELING_PREP_KEY",
    start_date="2021-01-01",
    end_date="2025-12-31",
)

toolkit.ratios.get_earnings_yield()

Or, after setting up the Finance Toolkit MCP, ask:

What earnings yields did Ford, General Motors and Toyota offer from 2021 to 2025?

Which returns:

  2021 2022 2023 2024 2025
F 0.2141 -0.0424 0.0882 0.1477 -0.1567
GM 0.1143 0.1823 0.2038 0.1195 0.0402
TM 0.0986 0.0971 0.1382 0.1225 nan

Parameters

get_earnings_yield accepts the following parameters.

ParameterTypeDescriptionExample
show_dailyboolWhether to show daily values: the close of each trading day against the statement figures of the latest period that has ended on or before that day (also when it ended before the start date), so no figures are used before their period closes. Defaults to False.True
include_dividendsboolWhether to deduct preferred dividends from net income. Defaults to False.True
dilutedboolWhether to use diluted shares in the calculation. Defaults to True.False
roundingint | NoneThe number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise).2
growthboolWhether to calculate the growth of the ratios. Defaults to False.True
lagint | list[int]The lag to use for the growth calculation. Defaults to 1.4
compoundboolWhether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False.False
standardizeboolWhether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.True
trailingintThe number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses the trailing twelve months (4 quarters) with quarterly data and single years with annual data.4
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