This figure represents the Graham EPS 10 Year Compound Annual Growth Rate, or CAGR, of the company's diluted earnings per share (EPS). It helps in determining whether companies have been consistent in growing their earnings over the long run.
This figure represents the 10 year CAGR of the company's diluted EPS (earnings per share) on a Graham basis - this means the growth between the average of years 10, 9 and 8 and years 3, 2 and 1, i.e the oldest 3 year average and the latest 3 year average.
This averaging approach helps to smooth out earnings which are quite volatile in most cases.
Stocks with higher earnings-per-share growth rates are generally more desired by investors than those with slower earnings-per-share growth rates, though in general high growth rates have a tendency to revert over the longer term to more stable growth rates.
One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.
One of the key contributing factors to stock price appreciation is the forecast rate of earnings growth. Accelerating earnings growth and broker forecast upgrades have also been cited by many investment experts such as Bill O'Neil as critical factors in their investment models.
| Ticker | Name | CAPE 10y CAGR | StockRank™ |
|---|---|---|---|
| LON:SLP | Sylvania Platinum | 69.01 | 77 |
| LON:FWT | Foresight Technology VCT | 49.16 | 0 |
| LON:DNE | Dunedin Enterprise Investment Trust | 48.49 | 0 |
| LON:DATA | GlobalData | 46.19 | 59 |
| LON:BREE | Breedon | 40.03 | 94 |