Earnings Per Share Growth — Smart Financial Analysis
Calculate EPS growth rates (YoY, CAGR), PEG ratio, and compare to industry benchmarks. Measure organic vs buyback-driven growth.
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EPS growth rate measures the percentage change in earnings per share over time. Year-over-year (YoY) growth compares one period to the prior year—useful for quarterly analysis. The PEG ratio (Price/Earnings to Growth) divides a stock. Sustainable growth comes from organic revenue expansion and margin improvement—not one-time cost cuts or buybacks.
Ready to run the numbers?
Why: EPS growth rate measures the percentage change in earnings per share over time. It is the primary driver of stock price appreciation—Nvidia\
How: Enter Initial EPS ($), Final EPS ($), Number of Periods to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
Run the calculator when you are ready.
📈 Real Company Examples — Click to Load
Inputs
EPS Growth Trend
Growth Comparison
PEG Ratio Analysis
Growth Sources
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
Earnings Per Share Growth analysis is used by millions of people worldwide to make better financial decisions.
— Industry Data
Financial literacy can increase household wealth by up to 25% over a lifetime.
— NBER Research
The average American makes 35,000 financial decisions per year—many can be optimized with calculators.
— Cornell University
Globally, only 33% of adults are financially literate, making tools like this essential.
— S&P Global
EPS growth is what makes stocks go up — Nvidia's 320% EPS CAGR from AI drove a $2T market cap surge. Peter Lynch's PEG ratio (P/E ÷ EPS growth) says a PEG under 1.0 is a potential bargain. But beware: 40% of S&P 500 EPS growth comes from buybacks, not real business improvement. This calculator measures YoY growth, CAGR, and organic vs buyback-driven EPS expansion.
📚 Sources
- • SEC EDGAR — Company filings
- • S&P Global — Index data
- • Peter Lynch — One Up On Wall Street
- • FactSet — Analyst estimates
📋 Key Takeaways
- • CAGR accounts for compounding; use it for multi-year comparisons
- • PEG < 1.0 suggests potential undervaluation (Lynch)
- • ~40% of S&P 500 EPS growth is buyback-driven
- • Organic revenue growth is higher quality than margin/buyback growth
📊 YoY vs CAGR EPS Growth
Year-over-Year (YoY)
Compares one period to the prior year. Best for quarterly or annual snapshots.
CAGR
Smooths multi-year growth into one annualized rate. Better for 3–5+ year comparisons.
📐 PEG Ratio (P/E ÷ Growth)
PEG = P/E ratio ÷ EPS growth rate. Lynch: PEG < 1.0 = potential bargain; PEG > 2.0 = possibly overvalued.
🌱 Sustainable Growth
Sustainable growth comes from organic revenue and margin improvement. 8–15% is typical for quality companies. Growth above 25% is often unsustainable.
🔄 Organic vs Buyback-Driven EPS Growth
Organic = higher profits. Buyback = fewer shares. ~40% of S&P 500 EPS growth is buyback-driven. Organic is higher quality.
🔮 Forward EPS Growth Estimates
Analysts project next 12 months EPS. Compare forward growth to historical CAGR to spot acceleration or deceleration.
📐 Formulas
Total Growth = ((Final EPS / Initial EPS) - 1) × 100
CAGR = ((Final/Initial)^(1/n) - 1) × 100
PEG = P/E ÷ EPS Growth %
📊 Industry Benchmarks
Technology: 15%+ avg. Utilities: 5–7%. Retail: 6–7%. Compare your growth to industry peers.
Disclaimer: EPS growth is one metric. Consider revenue growth, margins, debt, and competitive position. Not investment advice.
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