EPS CAGR Growth (4Y)
Returns the four-year Compound Annual Growth Rate (CAGR) of earnings per share for a company. This measures medium-term earnings growth.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
CAGR = (Ending EPS / Beginning EPS)^(1/4) - 1
Interpretation
| CAGR Level | Interpretation |
|---|---|
| > 20% | High growth |
| 10-20% | Strong growth |
| 5-10% | Moderate growth |
| 0-5% | Slow growth |
| < 0% | Declining earnings |
Notes
- Returns value as a decimal (0.15 = 15%)
- Four years gives a medium-term view of growth
- Accounts for share repurchases affecting EPS
Syntax
=EpsFourYearCAGR(Symbol)Returns
number
Four-year EPS CAGR as a decimal
Examples
=EpsFourYearCAGR("MSFT")=EpsFourYearCAGR("AAPL")=EpsFourYearCAGR("NVDA")=EpsFourYearCAGR(A1)=EpsFourYearCAGR("MSFT")*100When to Use
- Evaluate medium-term earnings growth
- Compare EPS growth across companies
- Growth investing analysis
- GARP (Growth at Reasonable Price) screening
When NOT to Use
| Scenario | Use Instead |
|---|---|
| 5-year EPS growth | EpsFiveYearCAGR() |
| 3-year EPS growth | EpsThreeYearCAGR() |
| Quarterly EPS average | EpsFourQuarterAverageGrowth() |
| One-year EPS growth | EPSOneYearGrowth() |
Common Issues & FAQ
Why is the value less than 1?
CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.15 = 15%).
Why is EPS growth higher than revenue growth?
Share buybacks reduce share count, boosting EPS even when net income is flat. Also, margin improvements can lift EPS faster than revenue.
What if EPS was negative?
CAGR calculation may return N/A or be unreliable when starting or ending EPS is negative.
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