EPS Growth Rate, 3-5 Year This item is calculated by using a least squares regression fit over a 3-to-5 year period of earnings per share based on a trailing four-quarter count. more...
P/E ratio/Average EPS growth rate The PEG ratio is an offshoot of the P/E ratio that's calculated by dividing a company's P/E by its average EPS growth rate.
The bank has been a consistently excellent performer and since 2002 had delivered seven successive years of record operating income and profits, with a five year compound EPS growth rate of 8.2 per cent.
Another way to use the P/E Ratio is to compare a stock's P/E to its projected EPS growth rate. This is known as the PEG or P/E to Growth Ratio, determined by dividing the P/E Ratio of a stock by its EPS growth rate.
The one-year (historical or trailing) EPS growth rate is calculated as the percentage change in earnings per share.
The formula used to calculate PEG is pretty simple: (P/E Ratio / Annual EPS Growth Rate). A PEG of 1 suggests that a companies p/e valuation is in line with their growth estimates.
The PEG ratio is an offshoot of the P/E ratio that's calculated by dividing a company's P/E by its average EPS growth rate.
Could you run a correlation between the EPS growth rates and the corresponding Stockholder equity growth rates.
It is calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate. Lower PEG ratios represent a better value, since the investor would be paying less for future earnings growth.
See also: Stock, Market, Share, Earnings, EPS
|