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EPS Growth Rate

Stock market EPSEquilibrium

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