EPS Growth Calculator
Calculate earnings per share growth rate and analyze investment potential over time
Calculate EPS Growth Rate
EPS Historical Data
Starting EPS value for analysis
Most recent EPS value
EPS Growth Analysis Results
Growth Rate Analysis
Apple Example (2011-2020)
Historical Data
EPS 2011: $1.00
EPS 2020: $3.31
Time Period: 9 years
Growth Analysis
1. Simple Growth: 231%
2. CAGR: 14.2%
3. Multiple: 3.31x
Strong consistent growth over 9 years
Investment Impact
$1,000 invested in 2011:
Would have grown to approximately $11,000 by 2021
Including stock price appreciation
EPS Growth Benchmarks
Declining
EPS shrinking - Concerning trend
Investigate underlying causes
Low Growth
Below market expectations
Mature or struggling companies
Moderate
Steady performance
Market average range
Excellent
Strong growth
Great investment potential
Exceptional
High-growth companies
Higher risk, higher reward
EPS Growth Investment Tips
Target 15%+ sustainable growth for 3+ years
Check if growth is revenue-driven vs cost-cutting
Compare with industry average growth rates
Use PEG ratio to assess price vs growth
Be cautious of unsustainable high growth
Consider economic cycles and market conditions
Understanding EPS Growth Analysis
What is EPS Growth?
EPS growth measures how much a company's earnings per share have increased over time. It's a crucial metric for investors because it indicates whether a company is becoming more profitable and creating more value for shareholders.
Why EPS Growth Matters
- •Indicates company's profit expansion
- •Helps identify investment opportunities
- •Key component in stock valuation
- •Measures management effectiveness
Growth Calculation Methods
Simple Growth:
((EPS Final - EPS Initial) ÷ EPS Initial) × 100%
CAGR:
((EPS Final ÷ EPS Initial)^(1/n) - 1) × 100%
- Simple Growth: Total percentage change between two periods
- CAGR: Compound annual growth rate over multiple years
- n: Number of years between periods
Example: EPS grows from $1.00 to $3.31 over 9 years = 14.2% CAGR
Growth Quality Assessment
- ✓Revenue-Driven: Growth from increased sales
- ✓Consistent: Steady growth over multiple years
- ✓Sustainable: Based on business fundamentals
Investment Applications
- 📊PEG Ratio: P/E ratio divided by growth rate
- 🎯Screening: Filter stocks by growth criteria
- 📈Valuation: Estimate future stock prices
Risk Considerations
- ⚠️Cyclical: Growth may be temporary
- ⚠️Unsustainable: Extremely high growth rates
- ⚠️Market Conditions: Economic environment impact