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 (2024-05-19), the stock price of IHH Healthcare Bhd is RM6.27.
IHH Healthcare Bhd's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was RM0.34. Therefore, IHH Healthcare Bhd's earnings yield of today is 5.34%.
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) %. IHH Healthcare Bhd's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 23.41%. 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.
IHH Healthcare Bhd Earnings Yield % Calculation
Earnings yield is the reciprocal of the P/E Ratio.
IHH Healthcare Bhd'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 RM0.335 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.
IHH Healthcare Bhd (XKLS:5225) 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.
IHH Healthcare Bhd Earnings Yield % Related Terms
Thank you for viewing the detailed overview of IHH Healthcare Bhd's Earnings Yield % provided by GuruFocus.com. Please click on the following links to see related term pages.
IHH Healthcare Bhd (XKLS:5225) Business Description
IHH Healthcare Bhd operates a network of healthcare clinics, hospitals, and postoperative rehabilitation centers. It also provides ancillary services, which include diagnostic laboratories, imaging centers, ambulatory care, and medical education facilities. The firm receives a majority proportion of its revenue through its Parkway Pantai segment, which operates hospitals and provides healthcare services in Asia. Two of Parkway Pantai's key markets are Singapore and Malaysia. The second majority proportion of revenue comes from Acibadem Holdings, a hospital operator and service provider in Central and Eastern Europe, the Middle East, and North Africa. The Group's operating segments comprise Singapore, Malaysia, India, Greater China, Turkiye and Europe, IMU Health, and PLife REIT.
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