filmov
tv
How to Calculate EPS Growth Rate for Stocks [Easy Way]
Показать описание
Understanding what EPS growth rate is and why it's important is crucial for any investor. EPS growth rate reflects the percentage increase in a company's earnings per share over a specific period of time, indicating the company's profitability and potential for long-term growth. A high EPS growth rate is typically a positive sign for investors, as it indicates that the company is generating consistent profits and reinvesting in its operations.
So, how do we calculate EPS growth rate? There are several formulas out there, but the most basic one involves dividing the company's current EPS by its previous EPS and subtracting one. However, this method can be time-consuming and may not provide the most accurate results. In this video, we will explore two more efficient ways to calculate EPS growth rate.
The first method is the CAGR formula, or Compound Annual Growth Rate. This formula takes into account the fluctuations in EPS over multiple years, resulting in a more accurate representation of the company's growth. This method involves first determining the number of years you want to calculate and then plugging in the corresponding EPS values into the formula. We will walk you through step-by-step on how to use this formula.
If you're looking for an even easier way to calculate EPS growth rate, then look no further than our third method - using Wisesheets. Wisesheets is an online tool that allows you to input a company's financial data and instantly calculates its EPS growth rate. This tool saves time and provides the most accurate results, making it the go-to option for investors.
📈 Free stock analysis spreadsheet templates:
🗣 Connect on social media:
#stockanalysis #valueinvesting #financialanalysis
0:00 Intro
0:20 Importance of eps growth rate
0:42 How to calculate eps growth rate (Formulas)
2:25 Easy way of calculating eps
4:25 Calculating eps using cagr formula
6:40 Automatic EPS growth rate
8:55 Conclusion
So, how do we calculate EPS growth rate? There are several formulas out there, but the most basic one involves dividing the company's current EPS by its previous EPS and subtracting one. However, this method can be time-consuming and may not provide the most accurate results. In this video, we will explore two more efficient ways to calculate EPS growth rate.
The first method is the CAGR formula, or Compound Annual Growth Rate. This formula takes into account the fluctuations in EPS over multiple years, resulting in a more accurate representation of the company's growth. This method involves first determining the number of years you want to calculate and then plugging in the corresponding EPS values into the formula. We will walk you through step-by-step on how to use this formula.
If you're looking for an even easier way to calculate EPS growth rate, then look no further than our third method - using Wisesheets. Wisesheets is an online tool that allows you to input a company's financial data and instantly calculates its EPS growth rate. This tool saves time and provides the most accurate results, making it the go-to option for investors.
📈 Free stock analysis spreadsheet templates:
🗣 Connect on social media:
#stockanalysis #valueinvesting #financialanalysis
0:00 Intro
0:20 Importance of eps growth rate
0:42 How to calculate eps growth rate (Formulas)
2:25 Easy way of calculating eps
4:25 Calculating eps using cagr formula
6:40 Automatic EPS growth rate
8:55 Conclusion
Комментарии