How is eps growth (5y cagr) calculated?

The formula is: EPS CAGR = (EPS_today / EPS_5y_ago)^(1/5) − 1. The full breakdown is on this page, including a worked example on AAPL.

Why does eps growth (5y cagr) matter for value investing?

EPS Growth (5Y CAGR) is a growth metric documented across Warren Buffett's 50+ years of Berkshire Hathaway shareholder letters and the broader value-investing canon (Graham, Fisher, Lynch, Greenblatt). It feeds into the Buffett-Fit composite score on invest-like - graders apply it consistently across every public stock so you can compare like-for-like.

Where can I see eps growth (5y cagr) for a real stock?

Open /buffett/aapl/ on invest-like for AAPL's EPS Growth (5Y CAGR) value alongside the rest of the 5-pillar Buffett-Fit verdict. Every public stock in the 12,000-ticker universe has the same field - refresh daily.

How is eps growth (5y cagr) different from revenue growth?

EPS Growth (5Y CAGR) and revenue growth are both growth metrics - see the linked term for the distinction in mechanics and use. The Buffett-Fit framework on invest-like uses both in the composite score with different pillar weights.

EPS Growth (5Y CAGR) - Definition, Formula + Buffett Example

Earnings per share growth rate, compounded annually over 5 years. The single best summary of underlying business compounding.

What it is

The 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.

Why per-share matters

A 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.

Buffett: "We're not interested in companies that grow earnings by selling more shares." Per-share figures cut through that.

What "good" looks like

15%+: exceptional. Compounds wealth fast (at 15%, $1 doubles in ~5 years)
8–15%: solid quality compounders
3–8%: market-average growth, depends on price paid
< 3% or negative: declining business, only attractive at deep discounts

Pair with ROIC

5Y 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.

EPS Growth (5Y CAGR)

What it is

Why per-share matters

What "good" looks like

Pair with ROIC

Related terms

See it on a real stock

Related on invest-like