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 (2024-06-08), the stock price of Auto Trader Group is £8.196.
Auto Trader Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was £0.28. Therefore, Auto Trader Group's earnings yield of today is 3.43%.
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) %. Auto Trader Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was 12.24%. 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.
Auto Trader Group Earnings Yield % Calculation
Earnings yield is the reciprocal of the P/E Ratio.
For company reported semi-annually, Auto Trader Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was £0.281 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:
The earnings in the calculation is the Trailing Twelve Months earnings.
Auto Trader Group (CHIX:AUTOl) 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.
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.
Auto Trader Group Earnings Yield % Related Terms
Thank you for viewing the detailed overview of Auto Trader Group's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
Auto Trader Group (CHIX:AUTOL) Business Description
Auto Trader Group PLC is a digital automotive marketplace based in the UK and Ireland, which provides trading channels for a range of vehicles such as cars, trucks, vans, bikes, and farm machinery, as well as relevant services such as car insurance, loans, valuations, and vehicle check services. The company generates revenue from three streams. It derives trade revenue from retailers and home traders advertising vehicles and using Auto Trader's products, which represent the majority of the group income. Consumer services revenue stems from private sellers placing advertisements and from the company's partners who provide services to consumers. Display advertising revenue is earned from manufacturers or their advertising agencies, which advertise their brand or services on the marketplace.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CHIX:AUTOL has been successfully added to your