Is It Cheap? · Intermediate · Pro filter
Earnings yield (EBIT / EV): what it means and how to read it
Operating profit ÷ enterprise value, as a percentage. It's the P/E turned upside down, with debt counted.
What is Earnings yield (EBIT / EV)?
Operating profit ÷ enterprise value, as a percentage. It's the P/E turned upside down, with debt counted.
A worked example
Operating profit of ₹800 Cr on an enterprise value of ₹10,000 Cr is an 8% yield. Compare it with the roughly 7% a government bond pays.
Why does Earnings yield (EBIT / EV) matter?
Lets you compare a share's earning power with an FD or bond rate.
How do you read Earnings yield (EBIT / EV)?
Higher is cheaper. 10% means the business earns ₹10 of operating profit a year for every ₹100 of its total value.
Higher is usually better.
What is a typical Earnings yield (EBIT / EV) in India today?
The median across the 4145 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 71 companies4.3%
Mid Cap · 118 companies3.5%
Small Cap · 3956 companies5.5%
By industry
Median, largest industries first
Pharmaceuticals · 1844.0%
Computers - Software & Consulting · 567.0%
Refineries & Marketing · 814.9%
Power Generation · 295.3%
Heavy Electrical Equipment · 433.9%
Auto Components & Equipments · 1105.1%
Cement & Cement Products · 334.3%
Civil Construction · 1109.9%
Aerospace & Defense · 311.6%
2/3 Wheelers · 95.4%
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.