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Earnings per Share (EPS) Growth Calculator

Calculate the percentage growth in corporate earnings per share (EPS) between two periods.

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Calculation Parameters

Specify your inputs below.

Calculated Result

Absolute EPS Increase $1.40
EPS Growth Rate (CAGR) 12.20%
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Expert Tip

Consistent EPS growth over 5-10 years shows strong business model scalability and earnings power.

How this Calculator Works

This calculator computes the growth rate of Earnings Per Share (EPS) over a specific time horizon. EPS growth is a core driver of stock price appreciation and is heavily monitored by growth investors.

Formula & Methodology

EPS Growth Rate = [ (Current EPS - Previous EPS) / Previous EPS ] * 100 - Current EPS is the earnings per share of the current period. - Previous EPS is the earnings per share of the comparison period.

Step-by-Step Calculation Example

Here is a step-by-step example showing how the calculations are performed:

A company reports an EPS of $2.50 this year, compared to $2.00 last year. 1. Calculate the difference in EPS: $2.50 - $2.00 = $0.50. 2. Divide by the previous EPS: $0.50 / $2.00 = 0.25. 3. Multiply by 100: 0.25 * 100 = 25%. Result: The Earnings Per Share (EPS) growth rate is 25%.

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Detailed Insights & Expert Guide

ℹ️ About this Calculation

This equity research and valuation calculator evaluates corporate fundamentals, stock price multiples, cost of capital, dividend discount models, and shareholder return metrics based on SEC financial reporting and Wall Street equity analysis standards.

Variable Glossary

Input

Equity Inputs

Share price, earnings per share (EPS), dividend amount, book value, debt/equity ratio, or systematic beta coefficient.

Parameter

Valuation Output

Price-to-Earnings (P/E), EV/EBITDA multiple, Intrinsic Value ($), WACC %, or Return on Equity (ROE %).

How to Calculate Step-by-Step

1

Step 1

Input current stock price, shares outstanding, or balance sheet / income statement numbers.

2

Step 2

Enter expected growth rate, cost of equity, or market risk premium assumptions.

3

Step 3

Review calculated valuation multiples, margin of safety comparison, or required rate of return.

FAQ

What is WACC and why is it crucial for equity valuation?
Weighted Average Cost of Capital (WACC) represents a company's required average return on debt and equity capital. It is used as the hurdle rate to discount future cash flows in DCF valuation models.
How does stock Beta measure systematic risk?
A stock beta of 1.0 means price volatility matches the broader market index. Beta > 1.0 indicates higher volatility, while Beta < 1.0 reflects lower systematic volatility.
Should valuation multiples be evaluated in isolation?
No. Valuation ratios (P/E, EV/EBITDA, P/B) should always be benchmarked against industry peer groups, historical trading averages, and expected earnings growth (PEG ratio).