Formula
Earnings CAGR (5Y) = (EPSₜ / EPSₜ₋₅)^(1/5) - 1
How to Interpret
Earnings CAGR (5Y) measures the medium‑term growth in earnings per share over the last five years. It helps distinguish between one‑off earnings spikes and a sustained growth trajectory. Strong 5‑year earnings CAGR often supports premium valuations.