Earnings Growth is an important measure for investors assessing company valuation. Higher earnings growth often leads to higher valuations. Common measures that Stockopedia list include trailing 12 month earnings per share growth (TTM EPS Growth), quarter on quarter earnings per share growth and the EPS compound annual growth rate (EPS CAGR). Other measures contained here include the cyclically-adjusted P/E 10y CAGR, net profit 5y CAGR%, EPS growth streak and operating profit growth.

Earnings Growth

EPS Growth

EPS Growth Q on Q

EPS CAGR

Operating Profit Growth

EPS Growth Streak

Net Profit 5y CAGR %

CAPE 10y CAGR

The Cashflow Growth section has data on the compound annual growth rates of free cash flow and operating cash flow over a period of five years (FCF 5y CAGR and OCF 5y CAGR).

Cashflow

FCF 5y CAGR

OCF 5y CAGR

Sales Growth is an important measure for investors as higher Sales Growth can lead to higher company valuations. Stockopedia includes the trailing 12m sales growth figure, the Sales 3y CAGR, the average level of annual sales over three years and the annual sales growth streak.

Sales

Sales Growth

Sales CAGR

Sales 3y Avg

Sales Growth Streak

Asset Growth Measures show how quickly a company has been growing assets and book value. This section also shows the compound annual growth rate of a group's cash and capital expenditure (Cash CAGR and Capex CAGR).

Assets

Book Value Growth

Capex CAGR

Book Value Growth PS

Cash CAGR

Asset Growth

The Expected Return / Sustainable Growth Rate estimates the return that an investor might expect on his investment. Stockopedia calculates it using the "Buffetology" approach: multiply the average 10 year rate of return on equity by the average retention ratio to get the implied sustainable growth rate; use this rate to calculate the predicted book value per share in year 10; multiply this by the average return on equity to get the 10 year earnings per share; multiply this by the average P/E ratio (plus any dividends) to get an expected return based on the current price.

Guru Growth

Exp. Return

Understanding the historic &amp; forecast growth of a company has important implications for pricing its shares, as higher growth often attracts a higher valuation multiple. At Stockopedia, we track the growth of different aspects of a business, including its sales, earnings, cashflow and assets to give investors a better idea of the company's prospects.

Growth