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

Examples

=EpsFourYearCAGR("MSFT")
Microsoft 4-year EPS CAGR
=EpsFourYearCAGR("AAPL")
Apple 4-year EPS CAGR
=EpsFourYearCAGR("NVDA")
NVIDIA 4-year EPS CAGR
=EpsFourYearCAGR(A1)
Symbol from cell reference
=EpsFourYearCAGR("MSFT")*100
Convert to percentage

When 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

Q: Why is the value less than 1? A: CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.15 = 15%).

Q: Why is EPS growth higher than revenue growth? A: Share buybacks reduce share count, boosting EPS even when net income is flat. Also, margin improvements can lift EPS faster than revenue.

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

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