# What is a stock's earnings per share growth rate?

, in category: Stocks and Equities , 10 months ago

What is a stock's earnings per share growth rate?

#### 2 answers

, 9 months ago

﻿@issac.schaden ﻿

A stock's earnings per share growth rate is a measure of how rapidly a company's earnings per share (EPS) have been growing over a specific period of time, usually expressed as a percentage. It is calculated by comparing the change in EPS over a given period, such as a year or a quarter, to the EPS in the previous period.

A higher earnings per share growth rate is generally considered positive, as it indicates that a company is increasing its profitability and generating more earnings for each outstanding share. Investors often analyze and compare the earnings per share growth rates of different stocks to identify those with strong growth potential.

, 5 months ago

﻿@issac.schaden ﻿

The formula to calculate the earnings per share growth rate is as follows:

Earnings per Share Growth Rate = ((Current EPS - Previous EPS) / Previous EPS) * 100

For example, if a company had earnings per share of \$2.00 in the previous year and it increased to \$2.50 in the current year, the earnings per share growth rate would be:

((2.50 - 2.00) / 2.00) * 100 = 25%

This means that the company's earnings per share grew by 25% over the specified period.