EPS Growth Rate Calculator
Calculate earnings per share growth rate over any time period.
Find CAGR of EPS and project future EPS to evaluate a stock on fundamental growth trajectory.
EPS Growth Rate (CAGR)
Earnings Per Share (EPS) growth rate measures how quickly a company is increasing its profitability on a per-share basis. It is calculated as a Compound Annual Growth Rate (CAGR), meaning the annualized rate that would take EPS from the starting value to the ending value over the period.
Formula:
EPS CAGR = (EPS_end / EPS_start) ^ (1 / years) - 1
What EPS is:
EPS = Net Income / Diluted Shares Outstanding
Why per-share matters: A company can grow net income by issuing more shares — but that dilutes existing shareholders. EPS growth captures whether earnings are growing relative to the shares you own.
Typical EPS growth benchmarks:
| Growth Rate | Category |
|---|---|
| < 5% | Slow, utilities, mature defensives |
| 5% – 10% | Moderate, established blue chips |
| 10% – 20% | Good, strong growth companies |
| 20% – 35% | Excellent, high-growth phase |
| 35%+ | Very high, verify sustainability |
EPS growth and PEG ratio: EPS growth rate is the denominator in the PEG ratio (P/E ÷ growth rate). A stock trading at P/E 30 with 30% EPS growth has a PEG of 1.0 — generally considered fairly valued.
Limitations:
- EPS can be manipulated via share buybacks: fewer shares makes EPS grow even if profits are flat
- One-time items (asset sales, write-downs) distort EPS: use adjusted EPS when available
- Negative base year EPS makes the formula unreliable
Projecting forward EPS:
Future EPS = Current EPS × (1 + growth rate) ^ years
This calculator computes both the historical CAGR and projects future EPS at that rate.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.