bond equity earnings yield ratio (BEER)


A metric which compares the yields of bonds and corporate earnings. A BEER of 1 indicates equal perceived risk; the first number is the bond yield, the second is the earnings yield. For example, Bond = 5.5%, Earnings = 6% 5.5/6= .92 BEER. Yield figures are typically taken from a benchmark from the bond and stock markets.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
bond dividend bond equivalent yield