The earnings yield or inverse price-to-earnings ratio determines the yield an investor can expect to earn in the form of net income at the current price.
Earnings Per Share (EPS) / Stock Price
or
1 / PE Multiple
Similar to the Dividend Yield,
the earnings yield is used calculate the return on investment in the form of Net Income.
Click the link below to download a spreadsheet with an example Price, Current calculation for RS Automation Ltd Co below: