How this calculator works
Convert the change between two positive earnings-per-share figures into a compound rate over equal periods. Use split-adjusted EPS and a consistent basic or diluted definition. The calculation smooths the path between endpoints and excludes changes between those dates. Negative or zero EPS cannot support this positive-base growth model.
Formula
Compound growth = (final EPS / initial EPS)^(1 / periods) - 1. Total EPS growth = final EPS / initial EPS - 1.
Worked example
EPS rising from $2 to $2.88 over two years compounds at 20% yearly, a 44% total increase. Falling from $4 to $3.24 over two years gives -10% yearly and -19% overall.
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Frequently asked questions
Can EPS cross from a loss to a profit?
This geometric model requires both endpoints to be positive. A turnaround should be described in dollars per share instead.
What period should I enter?
Use the number of equal intervals between observations. Annual EPS figures two years apart have two yearly periods.
Are stock splits important?
Yes. Restate earlier EPS onto the same share basis or the change may reflect the split rather than earnings growth.