How is the expected earnings growth calculated?
Benchmark Investing uses the most recently reported earnings in its calculations. The earnings growth is calculated by comparing the last four quarters of reported earnings with the next four quarters of estimates to project the growth over the next year. With some companies there are only two or three quarters of future estimates. In this case the earnings growth is calculated by comparing the two or three future estimates with the same two or three quarters of reported earnings numbers from the previous year.
