EPS CAGR Growth (5Y)

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

Supported Symbol Formats

Type Format Example
US Stocks SYMBOL AAPL, MSFT

Formula

CAGR = (Ending EPS / Beginning EPS)^(1/5) - 1

Interpretation

CAGR Level Interpretation
> 15% Excellent long-term growth
10-15% Strong growth
5-10% Moderate growth
0-5% Slow growth
< 0% Declining earnings

Notes

  • Returns value as a decimal (0.15 = 15%)
  • 5-year horizon smooths out cyclical effects
  • Important for PEG ratio calculations

Examples

=EpsFiveYearCAGR("MSFT")
Microsoft 5-year EPS CAGR
=EpsFiveYearCAGR("NVDA")
NVIDIA 5-year EPS CAGR
=EpsFiveYearCAGR("AAPL")
Apple 5-year EPS CAGR
=EpsFiveYearCAGR(A1)
Symbol from cell reference
=PERatio("MSFT")/EpsFiveYearCAGR("MSFT")/100
Calculate PEG ratio

When to Use

  • Long-term earnings growth analysis
  • PEG ratio calculations
  • Compare growth across companies
  • GARP (Growth at Reasonable Price) investing

When NOT to Use

Scenario Use Instead
3-year growth EpsThreeYearCAGR()
4-year growth EpsFourYearCAGR()
Quarterly average EpsFourQuarterAverageGrowth()
One-year 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: How do I calculate PEG ratio? A: PEG = P/E Ratio / EPS Growth Rate. Use =PERatio("AAPL")/(EpsFiveYearCAGR("AAPL")*100).

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

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