EPS CAGR 3 Year

Returns the three-year Compound Annual Growth Rate (CAGR) of earnings per share for a company. Provides a medium-term view of earnings growth.

Supported Symbol Formats

Type Format Example
US Stocks SYMBOL AAPL, MSFT

Formula

CAGR = (Ending EPS / Beginning EPS)^(1/3) - 1

Interpretation

CAGR Level Interpretation
> 20% High earnings growth
10-20% Strong growth
5-10% Moderate growth
0-5% Slow growth
< 0% Declining earnings

Notes

  • Returns value as a decimal (0.18 = 18%)
  • EPS includes effect of share repurchases
  • 3-year captures recent earnings trends

Syntax

=EpsThreeYearCAGR(Symbol)
Excel Desktop (Windows)

Examples

=EpsThreeYearCAGR("MSFT")
Microsoft 3-year EPS CAGR
=EpsThreeYearCAGR("NVDA")
NVIDIA 3-year EPS CAGR
=EpsThreeYearCAGR("AAPL")
Apple 3-year EPS CAGR
=EpsThreeYearCAGR(A1)
Symbol from cell reference
=EpsThreeYearCAGR("MSFT")*100
Convert to percentage

When to Use

  • Evaluate medium-term earnings trends
  • Growth stock analysis
  • Compare EPS growth across companies
  • GARP investing

When NOT to Use

Scenario Use Instead
Long-term 5-year growth EpsFiveYearCAGR()
4-year growth EpsFourYearCAGR()
Quarterly average EpsFourQuarterAverageGrowth()
Revenue growth RevenueThreeYearCAGR()

Common Issues & FAQ

Why is the value less than 1?

CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.18 = 18%).

Why is EPS growth higher than revenue growth?

Share buybacks boost EPS by reducing share count. Also, margin improvements can accelerate EPS beyond revenue growth.

What if starting EPS was negative?

CAGR calculation may return N/A or be unreliable when base EPS is negative.

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