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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 (2024-05-17), the stock price of Rand Capital is $14.3601. Rand Capital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $2.23. Therefore, Rand Capital's earnings yield of today is 15.53%.
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) %. Rand Capital's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2024 was -9.73%. 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.
Rand Capital's Earnings Yield for today is calculated as
Earnings Yield | = | Earnings per Share (Diluted) (TTM) | / | Share Price |
= | 2.230 | / | 14.3601 | |
= | 15.53 % |
Rand Capital's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.230 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.
Rand Capital (NAS:RAND) 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 Rand Capital's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
Benjamin E Godley | director | RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 2200, BUFFALO NY 14203 |
Adam Samuel Gusky | director | RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 2200, BUFFALO NY 14203 |
Cari L Jaroslawsky | director | C/O HARTER SECREST & EMERY LLP, 1600 BAUSCH & LOMB PLACE, ROCHESTER NY 14604 |
Daniel P Penberthy | officer: EVP and CFO | C/O RAND CAPITAL CORP, 2200 RAND BLDG, BUFFALO NY 14203 |
Robert M Zak | director | 250 MAIN STREET, BUFFALO NY 14202 |
Erland E Kailbourne | director | C/O RAND CAPITAL CORP, 2200 RAND BUILDING, BUFFFALO NY 14203 |
Heather Eastgate | officer: Chief Compliance Officer | C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203 |
East Asset Management, Llc | 10 percent owner | 777 NW BEACON SQUARE BLVD., BOCA RATON FL 33487 |
Nancy Marie Stone | officer: Chief Compliance Officer | C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203 |
Margaret Brechtel | officer: EVP, Treas., CFO & Sec. | C/O RAND CAPITAL CORPORATION, 14 LAFAYETTE SQUARE, SUITE 1405, BUFFALO NY 14203 |
User-friendly Holding, Llc | 10 percent owner | 10200 GROGANS MILL RD., SUITE 440, THE WOODLANDS TX 77380 |
User-friendly Phone Book, Llc | 10 percent owner | 10200 GROGANS MILL RD., SUITE 440, THE WOODLANDS TX 77380 |
Newman Reginald B Ii | director | PRIOR AVIATION SERVICE INC., 50 NORTH AIRPORT DRIVE, BUFFALO NY 14225 |
Utility Service Holding Co., Inc. | 10 percent owner | P.O. BOX 240, WARTHEN GA 31094 |
Colmac Holdings Ltd | 10 percent owner | 8 KING STREET EAST, SUITE 1901, TORONTO A6 M5C 1B5 |
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