Fundamentals

EPS Growth Rate

EPS growth rate measures the percentage increase in earnings per share over a period. EPS can grow from revenue growth, margin expansion, or share buybacks. Growth driven by revenue is generally considered higher quality than growth from buybacks alone.

Formula

EPS Growth = (Current EPS - Prior EPS) / Prior EPS x 100%

Related Terms

PEG RatioRevenue Growth RateEarnings Per Share (EPS)

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This term is covered in the following lessons:

Growth Metrics