EPS Growth

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Definition

YCharts EPS growth rates are calculated as quarterly year on year growth rates.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability.

If a company has an EPS of $5.00 in 2008 and EPS of $6.00 in 2009, the company has an EPS growth rate of $6.00/$5.00 - 1 = 20% during fiscal year 2009.

Formula

EPS Growth = (EPS this year) / (EPS last year) - 1; More generally, over t periods, Compounded EPS Growth = (EPS this period/EPS t periods ago)^(1/t) - 1

YCharts calculates as (EPS this quarter) / (EPS four quarters ago) - 1 for each quarter in our system.

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