How Do You Calculate EPS Growth Rates?
The EPS (Earnings Per Share) growth rate is the percentage rate that shows how good or bad an entity’s performance is over a period of time. EPS growth rates are monitored by investors who put their money on a certain company. This percentage is computed with the use of the rates for two reporting periods. The rate can either be a negative one or a positive one. Investors take note of this so that they can monitor the growth of their money based on their earnings per share on a certain company. It is a way to keep themselves informed on the statistical growth if their shares. The reports for rates can come quarterly or annually. There are easy formulae that you can use so that you can calculate EPS growth rates. Here are the steps to calculate these formulae: • Formula 1 First, get the difference between the net earnings of the company and the dividends on the stocks. Divide this number by the number of outstanding shares that the company has; the rate that you will get is the EPS rate
