Tag Archives: growth rate

Calculating CAGR for historical data with Excel

One very common task that we are faced with when analyzing historical data is the calculation of compound annual growth rate (CAGR). While possible to calculate by hand, it’s a somewhat tedious equation so fortunately for us Microsoft Excel has built in functions to do the calculations for us. This quick tutorial will show you how, using historical EPS data for Caterpillar (CAT). Continue reading

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How to estimate future EPS growth rates

One of the most important factors that affects a company’s share price is the expected growth rate of the EPS (earnings per share). It logically follows then, that value investors would factor this important piece of information into the determination of a company’s intrinsic value. For most valuation techniques, the future EPS growth rate is the most important and influential factor in arriving at an accurate valuation. Fortunately, there are a few simple methods we can use to determine how to estimate the future EPS growth rate. Let’s see how. Continue reading

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