Formula
Earnings CAGR (3Y) = (EPSₜ / EPSₜ₋₃)^(1/3) - 1
How to Interpret
Earnings CAGR (3Y) is the compound annual growth rate of earnings per share over the last three years. It smooths short‑term fluctuations to show the underlying growth trend. Steady positive earnings CAGR is a good sign for long‑term investors.