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

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

Q: Why is the value less than 1? A: CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.18 = 18%).

Q: Why is EPS growth higher than revenue growth? A: Share buybacks boost EPS by reducing share count. Also, margin improvements can accelerate EPS beyond revenue growth.

Q: What if starting EPS was negative? A: CAGR calculation may return N/A or be unreliable when base EPS is negative.

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today
MarketXLS Excel Add-in Tutorial - How to Use EPS CAGR 3 Year and Other Financial Formulas
▶
How does MarketXLS work?

Related Functions