This growth rate is the compound annual growth rate of Diluted Normalised Earnings Per Share over the last 3 years. Although company B has higher Average EPS growth rate , it doesn't indicate that it has higher earning quality. Subtract year 1 cash flows from year 2 cash flows and then divide by year 1 cash flows. Calculate the EPS growth every year since 2002 using the following formula: =AVERAGE((B3-B2)/B2) B3 = The Current Year EPS B2= Last year's EPS. To calculate an annual percentage growth rate over one year, subtract the starting value from the final value, then divide by the starting value. Earnings per share (EPS) is the portion of a company’s profit that is allocated to each outstanding share of common stock and serves as a proxy of the company’s financial health. EPS Growth Rate, 3 Year . The compound 3-year growth rate calculated using the least squares fit over the latest two to three years' earnings per share on a running 12-month basis. The CAGR formula is the following: (current year's EPS / EPS 3 years ago) ^ (1/3) - 1 NOTE: If less than 3 years are available, a 'NA' (Not Available) code will be used. Multiply this result by 100 to get your growth rate displayed as a percentage. Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Company B has more "bumpy" earning than company A. Earnings Per Share (EPS) Formula. The answer is 1 or 100 percent.

Compounded EPS growth rate unable to reflect such, as it only take consideration into EPS during starting period and ending period. The EPS calculator uses the following basic formula to calculate earnings per share: EPS = (I - D) / S. Where: EPS is the earnings per share, I is the net income of a company, D is the total amount of preferred stock dividends, S is the weighted average number of common shares outstanding In this example, the growth rate is calculated by subtracting $100,000 from $200,000 and then dividing by $100,000. Growth rate will be calculated only if there is a minimum of eight trailing 4-quarter periods of positive earnings (uses a minimum of 11 quarters of data). Earnings per share serve as an indicator of a company's profitability. Calculate the growth rate from year 1 to year 2.

This will give you the EPS growth rate for 1 year period. Keep reading to learn how to calculate annual growth over multiple years!