Earnings yield flips the familiar P/E ratio on its head — instead of asking how many rupees you pay per rupee of profit, it asks how much profit you get per rupee invested. A dedicated earnings yield NSE screener lets you rank the entire market by this Graham-inspired valuation lens and then layer quality and trend filters on top. Start with our fundamental value picks screener to see how valuation-first filtering works in practice.

1,800+

NSE Stocks Screened

8%+

Earnings Yield Threshold

10Y

Historical Data Window

Combined Filters

Why Earnings Yield Matters for NSE Investors

Benjamin Graham argued that a stock should be bought like a business — with a margin of safety between price and intrinsic value. Earnings yield (EPS ÷ Price, or 1 ÷ P/E) expresses that relationship directly: a stock at a P/E of 12 has an earnings yield of 8.3%, meaning the business generates ₹8.3 of profit for every ₹100 of market price. Comparing this figure against the 10-year G-Sec yield (roughly 6.8–7.2% in 2026) tells you whether equity risk is being compensated. Our techno-fundamental CANSLIM guide explains how to pair such valuation screens with earnings momentum.

Earnings yield is also more intuitive than P/E when comparing across sectors or against bonds, because it is a percentage rather than a multiple. A PSU bank at a P/E of 6 (16.7% earnings yield) and a consumer staple at a P/E of 45 (2.2% earnings yield) sit at opposite ends of the risk-reward spectrum. Screening by earnings yield first, then confirming with return on equity above 15% and debt-to-equity below 1.0, filters out value traps that look cheap only because earnings are about to collapse.

📌 Key Insight
An earnings yield above the 10-year G-Sec yield is Graham's basic bargain test — but it only works when paired with stable or rising earnings, not falling ones.

How to Run an Earnings Yield Screen on NSE

Set the earnings yield floor — Start with an earnings yield of at least 8% (P/E ≤ 12.5), which gives roughly a 100–150 bps premium over the 10-year G-Sec yield. For large caps above ₹50,000 crore market cap, 6.5% is a reasonable relaxed threshold.

Add a quality gate — Require return on equity above 15% and return on capital employed above 18% for the last three years. This removes companies that are cheap because their capital allocation is destroying value.

Filter out leverage and pledge risk — Cap debt-to-equity at 1.0 for non-financials and exclude stocks with promoter pledge above 10%. Financials should be screened separately using NIM and gross NPA instead of D/E.

Confirm with trend and volume — Overlay a price-above-200-DMA condition and positive 3-month relative strength. Our techno-fundamental CANSLIM screener does exactly this by combining fundamental scores with price action.

Review the shortlist manually — Check the last four quarters for earnings growth consistency and any one-off items. A stock with a 9% earnings yield and flat-to-rising EPS is a genuine candidate; one with a 9% yield and three consecutive quarters of declining profit is a value trap.

💡 Pro Tip
Rank your earnings yield shortlist by 3-month relative strength rather than by yield alone — the cheapest names are often cheap for a reason, while the ones starting to outperform are where the re-rating happens.

Earnings Yield Screen: Key Thresholds

Indicator	Threshold	Signal	Why It Matters
Earnings Yield (1/P/E)	≥ 8% (P/E ≤ 12.5)	✅ Bullish	Gives a clear premium over the ~7% G-Sec yield, satisfying Graham's bargain test.
Return on Equity	≥ 15% (3-yr avg)	✅ Bullish	Confirms the business earns more than its cost of capital, so cheapness is not structural.
Debt-to-Equity	≤ 1.0 (non-financials)	⚡ Watch	Moderate leverage is acceptable but should be trending down, not up.
Earnings Growth (YoY)	Negative for 2+ quarters	❌ Bearish	Falling EPS inflates the yield artificially — a classic value trap signal.

✅ Earnings Yield Entry Checklist

✓Earnings yield ≥ 8% and above the current 10-year G-Sec yield

✓ROE ≥ 15% and ROCE ≥ 18% sustained over three years

✓Debt-to-equity ≤ 1.0 with promoter pledge under 10%

✓Price above 200-DMA with positive 3-month relative strength

✗Avoid stocks with two or more consecutive quarters of declining EPS

⚠️ Common Mistake
The most common mistake is buying the highest earnings yield in the market without checking earnings trajectory — a P/E of 4 often means the market expects profits to halve, not that you have found a bargain.

Try It on QUANTSCASE

Run the valuation-first screen below, then cross-check candidates against trend and volume filters. For a broader workflow, read our guide to screening NSE stocks before finalising entries.

Fundamental Value Picks →

Ranks NSE stocks by earnings yield, ROE, and low leverage

Techno-Fundamental CANSLIM →

Combines fundamental strength with price and volume confirmation

Trend Following →

Filters stocks trading above key moving averages with rising ADX

Volume Accumulation →

Flags stocks with OBV divergence and institutional-style accumulation

Rank NSE stocks by earnings yield and quality in one click

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This guide is for educational purposes only and does not constitute investment advice; always do your own research before trading.