Steady EPS growth is one of the clearest signs of a healthy, growing company. Investors compare it with the P/E ratio (the PEG ratio) to see whether a stock’s price is justified by its growth.
How to use the EPS Growth Calculator
- Initial EPS
- Final EPS
- Number of periods (years)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the initial EPS, the final EPS and the number of years between them.
Tips
- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.
Common mistakes to avoid
- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.
Inputs explained
| Field | What to enter |
|---|---|
| Initial EPS | Amount in your currency |
| Final EPS | Amount in your currency |
| Number of periods (years) | A number |
What each result means
- Total growth in EPS = ([Final EPS] – [Initial EPS])÷abs([Initial EPS])×100
- Change in EPS = [Final EPS] – [Initial EPS]
Example values
How the main result changes when Initial EPS changes and everything else stays at the example values above:
| Initial EPS | EPS growth rate (per year) (%) |
|---|---|
| 1.05 | 34.14 |
| 1.58 | 21.21 |
| 2.1 | 12.8 |
| 2.63 | 6.68 |
| 3.15 | 1.93 |
| 4.2 | -5.15 |
Formula
Total growth = (final EPS − initial EPS) ÷ |initial EPS|Annual EPS growth rate = (final EPS ÷ initial EPS)^(1 ÷ years) − 1Worked example
Inputs — Initial EPS: $2.1; Final EPS: $3.4; Number of periods (years): 4.
Results — Total growth in EPS = 61.9 %; EPS growth rate (per year) = 12.8 %; Change in EPS = $1.30.
Frequently asked questions
How is EPS growth calculated?
(Final EPS ÷ initial EPS)^(1/years) − 1 for the annual rate.
What if EPS was negative?
Compound growth isn't meaningful; use the change in dollars instead.
What is a good EPS growth rate?
10–15% a year is strong for an established company.
What formula does the EPS Growth Calculator use?
Total growth = (final EPS − initial EPS) ÷ |initial EPS|.