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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 (2024-05-11), the stock price of Desktop Metal is $0.6416. Desktop Metal's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $-0.99. Therefore, Desktop Metal's earnings yield of today is N/A%.
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) %. Desktop Metal's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 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.
Earnings yield is the reciprocal of the P/E Ratio.
Desktop Metal's Earnings Yield for today is calculated as
Earnings Yield | = | Earnings per Share (Diluted) (TTM) | / | Share Price |
= | -0.990 | / | 0.6416 | |
= | N/A % |
Desktop Metal'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 $-0.990 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.
Desktop Metal (NYSE:DM) 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.
Thank you for viewing the detailed overview of Desktop Metal's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
Farhad Fred Ebrahimi | 10 percent owner | 191 UNIVERSITY BLVD., #246, DENVER CO 80206 |
Scott J Dussault | director | C/O DESKTOP METAL, INC., 63 THIRD AVE, BURLINGTON MA 01803 |
Jason M Cole | officer: CFO & TREASURER | C/O DESKTOP METAL, INC., 63 3RD AVENUE, BURLINGTON MA 01803 |
Ric Fulop | director, officer: Chief Executive Officer | C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803 |
Thomas Nogueira | officer: CHIEF OPERATING OFFICER | C/O DESKTOP METAL, INC., 63 3RD AVENUE, BURLINGTON MA 01803 |
Hindery Leo J. Jr. | director, other: See remarks. | C/O HMG, INC., C/O CINE LATINO, INC., 2000 PONCE DE LEON BLVD, SUITE 500, CORAL GABLES FL 33134 |
Michael M. Jafar | officer: CEO, Desktop Health | 17901 VON KARMAN AVENUE, SUITE 150, IRVINE CA 92614 |
James S Eisenstein | director | C/O AMERICAN TOWER CORP, 116 HUNTINGTON AVE, BOSTON MA 02116 |
Jeffrey R Immelt | director | GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210 |
Siblani Ali El | director, officer: CEO of EnvisionTec US, LLC | 63 THIRD AVENUE, BURLINGTON MA 01803 |
James Haley | officer: CFO & Treasurer | 63 THIRD AVENUE, BURLINGTON MA 01803 |
Arjun Aggarwal | officer: Chief Product Officer | C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803 |
Wen Hsuan Hsieh | director | C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803 |
Forest Baskett | 10 percent owner | |
Bilal Zuberi | director | C/O DESKTOP METAL, INC., 63 THIRD AVENUE, BURLINGTON MA 01803 |
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