EPS Growth Rate Calculator
Calculate the Earnings Per Share growth rate—one of the Big 5 numbers for evaluating wonderful companies.
EPS Growth Rate
0%
Formula
What is EPS Growth Rate?
Earnings Per Share (EPS) growth rate measures how quickly a company's earnings are growing on a per-share basis. It's one of the five key metrics (the "Big 5") that Rule #1 investors use to determine if a company is a wonderful business.
Rule #1 Guideline
Look for companies with EPS growth of 10% or higher consistently over the past 10 years. This indicates the business has a durable competitive advantage.
Why EPS Growth Matters
- • Predictability: Consistent EPS growth suggests a predictable, well-managed business.
- • Compounding: Growing earnings compound over time, increasing shareholder value.
- • Valuation: EPS growth rate is used to project future earnings and calculate sticker price.
Where to Find EPS Data
You can find historical EPS data on financial websites like Yahoo Finance, Morningstar, or the company's annual reports. Look for the "diluted EPS" figure for the most accurate calculation.
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