EpsThreeYearCAGR: Analyze Long-Term Earnings Growth

The EpsThreeYearCAGR function in MarketXLS retrieves the Compounded Annual Growth Rate (CAGR) of a company's Earnings Per Share (EPS) over the last three years. By returning an annualized percentage, this function helps you quickly gauge a stock’s medium-term earnings performance in a single, convenient Excel formula.

Why Use This Function?

• Quickly Evaluates Growth: Provides a fast measure of how EPS has trended annually over three years.
• Ideal for Screening Stocks: Picks out companies with stable or growing earnings, useful when comparing multiple tickers.
• Clear CAGR Calculation: Simplifies a potentially complex calculation (3-year CAGR) into a single function call.
• Integrates with Excel: No need to manually fetch or calculate; MarketXLS handles both data retrieval and CAGR computation.
• Informs Investment Decisions: A positive, consistent 3-year growth fosters confidence in long-term potential.

How to Use in Excel

Use the syntax below in any cell in your Excel worksheet. Replace "msft" with any valid stock ticker symbol:

=EpsThreeYearCAGR("msft")

1. Type “=EpsThreeYearCAGR(” into the cell.
2. Provide a valid ticker symbol in quotes (e.g., "AAPL" or "TSLA").
3. Press Enter to retrieve the 3-year EPS CAGR.

If the symbol is invalid or if data is unavailable, the function returns "NA". If your license is not active, a message or "NA" will appear.

Parameters Explained

• Only one parameter is required: Symbol.
• The function pulls the 3-year EPS growth data from MarketXLS’s fundamental database with no additional inputs.

Example Usage

Basic Examples

1. Single Stock Lookup
   • Cell A1: =EpsThreeYearCAGR("MSFT")
   This returns Microsoft’s 3-year EPS CAGR as a decimal or percentage (depending on your cell formatting).

2. Another Ticker
   • Cell B1: =EpsThreeYearCAGR("AAPL")
   Retrieves Apple’s 3-year EPS CAGR. If Apple has had stable growth, expect a positive number.

3. Invalid Symbol
   • Cell C1: =EpsThreeYearCAGR("XYZNotReal")
   Returns "NA" if "XYZNotReal" is not a recognized ticker.

Advanced Scenarios

• Comparing Multiple Stocks
Enter multiple calls in adjacent cells:
• A1: =EpsThreeYearCAGR("MSFT")
• A2: =EpsThreeYearCAGR("AAPL")
• A3: =EpsThreeYearCAGR("TSLA")
Then compare results to screen for the best 3-year EPS growth.

• Integration with Other Metrics
For a holistic view, combine EpsThreeYearCAGR with other MarketXLS fundamentals (e.g., Price to Earnings, Beta). This allows you to build more comprehensive custom screens or dashboards.

• Investment Strategy Example
Use EpsThreeYearCAGR to filter stocks that show positive 3-year EPS trends, then add them to a watchlist or portfolio if other fundamentals also align with your criteria.

Common Questions and Troubleshooting

1. Why am I getting "NA"?

   • Check if you entered a valid symbol.
   • Ensure your MarketXLS license is active.
   • Verify an internet connection is available for data retrieval.

2. How does this function handle negative EPS or missing data?

   • If data is missing or the returned values cannot be calculated (e.g., negative EPS in the base year leading to an undefined growth rate), the function may fall back to "NA".

3. Can I pass a date range?

   • No. EpsThreeYearCAGR specifically calculates a preset 3-year growth using MarketXLS’s fundamental data.

4. Do I need to convert the result to a percentage?

   • It depends on your cell formatting. If the result appears as a decimal, simply format the cell as a percentage to display it accordingly.

By using EpsThreeYearCAGR in Excel with MarketXLS, you can quickly assess medium-term earnings performance of any listed company. This simple yet powerful function offers a consistent overview of a firm’s growth trajectory and can play a crucial role in forming data-driven investment decisions.