The calculator shows 41.18 % growth: $$ rac{1.20-0.85}{0.85}\times100 = 41.18\%$$
Example B
Initial EPS: 5.00
Ending EPS: 6.50
The calculator shows 30 % growth: $$ rac{6.50-5.00}{5.00}\times100 = 30\%$$
Quick-Facts
EPS figures update quarterly in U.S. filings (SEC Form 10-Q) [SEC.gov].
Typical EPS growth range for S&P 500 stocks: −50 % to +50 % per year (Morningstar, 2024).
Free data: EDGAR database, company investor pages (SEC.gov).
Standard definition follows IAS 33 “Earnings per Share” (IFRS.org).
Negative EPS growth signals falling profitability, a key risk flag (CFA Institute, 2023).
FAQ
What is EPS Growth Rate?
EPS Growth Rate is the percentage change in earnings per share between two dates, highlighting profitability momentum (Investopedia, URL).
Why does EPS growth matter to investors?
Rising EPS indicates a firm generates more profit per share, often boosting valuation and dividends (Damodaran, 2023).
How do you calculate it manually?
Subtract initial EPS from ending EPS, divide by initial, then multiply by 100; see the formula above (CFA Institute, 2023).
What is a healthy benchmark?
Consistent growth above inflation and sector average—roughly 5 %–15 % for large caps—is viewed as sustainable (FactSet, 2024).
Can you compare EPS growth across industries?
Yes, but adjust for cyclicality; utilities grow slower than tech, so context matters (S&P Global, 2024).
How do buybacks distort EPS growth?
Repurchases cut share count, raising EPS even if net income stalls, so examine both metrics (SEC Investor Bulletin, 2023).
Does inflation affect analysis?
High inflation can inflate nominal EPS; compare real (inflation-adjusted) growth for clarity (BLS CPI Report, 2024).
Where can you find reliable EPS data?
Use audited annual reports, SEC filings, or verified data services such as Refinitiv and Bloomberg (Refinitiv Datascope, 2024).
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