Reciprocal

1. Maths.

The reciprocal of a number is 1 divided by that number.

For example, the reciprocal of 0.05 (5%) is 1 / 0.05 = 20.

2.

Reciprocal also refers to something done in return for the granting of a favourable treatment or other advantage, especially when the thing done in return is perceived as being of equal value, or symmetrical.

See also

• Earnings yield
• Inversion
• Price earnings ratio