Shaw Communications (Shaw Communications) Earnings Yield % : 3.76% (As of Jun. 05, 2024)

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What is Shaw Communications Earnings Yield %?

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 (2024-06-05), the stock price of Shaw Communications is $30.18. Shaw Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2022 was $1.13. Therefore, Shaw Communications's earnings yield of today is 3.76%.

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) %. Shaw Communications's Forward Rate of Return (Yacktman) % for the quarter that ended in Nov. 2022 was 13.21%. 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.

Shaw Communications Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Shaw Communications's Earnings Yield for today is calculated as

Earnings Yield	=	Earnings per Share (Diluted) (TTM)	/	Share Price
	=	1.134	/	30.18
	=	3.76 %

Shaw Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.134 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.

Shaw Communications (NYSE:SJR) 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.

Shaw Communications Earnings Yield % Related Terms

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Shaw Communications (Shaw Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Shaw Communications Inc (NYSE:SJR) » Definitions » Earnings Yield %

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Traded in Other Exchanges

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Address

630 - 3rd Avenue S.W., Suite 900, Finance Department, Calgary, AB, CAN, T2P 4L4

Website

https://www.shaw.ca

Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.