EPS Growth (5Y CAGR)

What it is\nThe annualised rate at which earnings per share grew over the trailing 5 years. EPS at $4 today vs. $2 five years ago = 14.9% CAGR.\n\n## Why per-share matters\nA company can grow total earnings 10% per year while diluting shareholders 8% per year through stock-based comp and acquisitions — leaving you with 2% per-share growth despite the headline.\n\nBuffett: "We're not interested in companies that grow earnings by selling more shares." Per-share figures cut through that.\n\n## What "good" looks like\n- 15%+: exceptional. Compounds wealth fast (at 15%, $1 doubles in ~5 years)\n- 8–15%: solid quality compounders\n- 3–8%: market-average growth, depends on price paid\n- < 3% or negative: declining business, only attractive at deep discounts\n\n## Pair with ROIC\n5Y EPS growth alone is misleading — a business growing EPS by destroying capital (high reinvestment, low ROIC) is creating less value than a slower-growing business at high ROIC. The best Buffett-quality signature is high ROIC + steady EPS growth — not just the growth rate alone.