The formula to calculate the EPS Growth (EPSG) is:
\[ EPSG = \left( \frac{CEPS - PEPS}{PEPS} \right) \times 100 \]
Where:
Let's say the current EPS is $5 and the past EPS is $4. Using the formula:
\[ EPSG = \left( \frac{5 - 4}{4} \right) \times 100 \]
We get:
\[ EPSG = 25 \]
So, the EPS growth (\( EPSG \)) is 25%.
Definition: The annual EPS growth formula calculates the year-over-year growth rate of earnings per share (EPS).
Formula: \( \text{EPS Growth Rate} = \frac{\text{EPS}{\text{current year}} - \text{EPS}{\text{previous year}}}{\text{EPS}{\text{previous year}}} \times 100 \)
Example: \( \text{EPS Growth Rate} = \frac{5 - 4}{4} \times 100 \)
Definition: This formula calculates the EPS growth rate using Excel functions.
Formula: \( \text{EPS Growth Rate} = \frac{\text{EPS}{\text{current}} - \text{EPS}{\text{previous}}}{\text{EPS}{\text{previous}}} \times 100 \)
Example: \( \text{EPS Growth Rate} = \frac{6 - 5}{5} \times 100 \)
Definition: The projected EPS growth rate estimates future EPS growth based on historical data and projections.
Formula: \( \text{Projected EPS Growth Rate} = \frac{\text{Projected EPS} - \text{Current EPS}}{\text{Current EPS}} \times 100 \)
Example: \( \text{Projected EPS Growth Rate} = \frac{7 - 6}{6} \times 100 \)
Definition: EPS growth rate measures the rate at which a company's earnings per share are increasing or decreasing over a period.
Formula: \( \text{EPS Growth Rate} = \frac{\text{EPS}{\text{end}} - \text{EPS}{\text{start}}}{\text{EPS}{\text{start}}} \times 100 \)
Example: \( \text{EPS Growth Rate} = \frac{8 - 7}{7} \times 100 \)