Stock Growth Rate Calculator to Measure EPS Increases

Stock Growth Rate Calculator Sign

This free online Stock Growth Rate Calculator will calculate the percentage growth of a company's earnings per share over time.

You can select the time units you wish to use for entering the number of growth periods, and the calculator will calculate the periodic rate -- plus convert that rate into its annualized equivalent.

Read more ...

Also on this page:

Stock Growth Rate Calculator

Calculate stock growth rate to measure earnings per share increases.

Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Begin EPS:Begin EPS:Beginning earnings per share:Beginning earnings per share:

Beginning earnings per share:

Enter the earnings per share (EPS) from the period you wish to begin to calculate stock growth rate from using numeric characters only (no currency sign or comma). If you need to calculate the beginning earnings per share (EPS), click/tap the link on this line to open the Earnings Per Share Calculator in a new window.

$
End EPS:Ending EPS:Ending earnings per share:Ending earnings per share:

Ending earnings per share:

Enter the current or ending earnings per share (EPS) using numeric characters only (no currency sign or comma). If you need to calculate the ending earnings per share (EPS), click/tap the link on this line to open the Earnings Per Share Calculator in a new window.

$
Time units:Time units:Time units:Time units:

Time units:

Select the units of time you wish to use when entering the number of periods.

Periods:# of periods:Number of periods:Number of periods:

Number of periods:

Enter the number of whole periods (no decimal points or fractions) between the starting and ending earnings per share entries made in the first two input fields. The calculator will attempt to find the periodic growth rate needed to cause the beginning EPS to grow to the ending EPS in the entered number of selected time units.

#
Growth rate:Growth rate:Periodic growth rate:Periodic growth rate:

Stock growth rate:

Based on your entries, this is the periodic growth rate of the stock for the entered number of selected time units.

Annualized:Annualized:Annualized growth rate:Annualized stock growth rate:

Annualized stock growth rate:

This is the annualized periodic growth rate of the stock using the formula APY = (1 + R)^PPY-1, where R is the periodic rate and PPY is the number of periods per year.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

What stock growth rate is and what it's used for.

What is Growth Rate?

In the case of stocks, the growth rate refers to the compounded percentage by which a company's earnings grows over time.

How to Calculate Growth Rate of a Stock

Because company earnings rarely ever grow at a constant percentage increase, to arrive at a meaningful growth comparison figure, a rather complex algorithm must be employed.

I'll spare you the "al-gory" details, except to say that the algorithm engages in the process of "keep guessing at what annualized rate of return would cause the beginning EPS to grow to the ending EPS in the specified number of periods."

This process of guessing (iterations) continues until the algorithm either finds a match within the specified tolerance or until the maximum number of guesses is exceeded (the stock growth rate calculator has a tolerance of .000001 and is set not to exceed 1 million guesses).

What is Stock Growth Rate Useful For?

One popular use for calculating stock growth rate is for comparing one company's earnings increases to those of another company. Because the earnings increases are rarely ever constant, it becomes difficult to compare the two. However, once you know the annualized growth rates of the companies, you then have a meaningful yardstick for determining which company's earnings is growing at a faster pace.

Another popular use of stock growth rate figures is for calculating the expected rate of return on a stock investment. In this case, a company's historical growth rate is used in combination with other measurements (current price and dividend) to estimate the future expected rate of return for a stock investment.

Where Can You Find the Dependent Variables?

You can usually find everything you need (periodic EPS figures) by going to the company's website and clicking on Financial Statements.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.