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How do you convert a ratio to a yield in your Margin of Safety table? 

Ratios and yields are the inverse of each other.  Ratios are a multiple and Yields are a percentage.

 

So, a Price Earnings ratio is: Price per share ÷ Earnings per share. It is expressed as a ratio or how many times price is the EPS.

 

The earnings yield is its inverse: EPS ÷ Price per share x 100. It is expressed as a yield percentage.

 

To convert any of the ratios to yields, using Price Earnings Ratio as an example: Earnings Yield = 100 ÷ Price Earnings Ratio.   

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