Earnings Growth Calculator
Calculate earnings per share CAGR and PEG ratio. Project future stock price at different PE multiples.
EPS & Price Projection
| Year | EPS | Price @25PE | Price @15PE | Price @20PE |
|---|---|---|---|---|
| Yr 1 | ₹40.25 | ₹1,006 | ₹604 | ₹805 |
| Yr 2 | ₹46.29 | ₹1,157 | ₹694 | ₹926 |
| Yr 3 | ₹53.23 | ₹1,331 | ₹798 | ₹1,065 |
| Yr 4 | ₹61.22 | ₹1,530 | ₹918 | ₹1,224 |
| Yr 5 | ₹70.4 | ₹1,760 | ₹1,056 | ₹1,408 |
Frequently Asked Questions
What is EPS growth?
Earnings Per Share growth measures how fast a company's profit per share is growing. EPS Growth = (Current EPS - Past EPS) / Past EPS × 100. Consistent 15%+ EPS growth is a sign of a quality company.
What is PEG ratio?
PEG = P/E ratio / EPS growth rate. A PEG of 1 means fairly valued, below 1 is undervalued, above 1 is overvalued relative to growth. It adjusts valuation for growth rate.
What is a good earnings growth rate?
For large caps: 12-18% is good. Mid caps: 18-25%. Small caps: 25%+. Nifty 50 earnings growth averages ~12-14% long-term. Look for consistency over 5-10 years, not just one year.
How to project future earnings?
Use historical growth rate as a base, adjust for industry cycle, margin expansion/contraction, and revenue growth trajectory. Analyst consensus estimates on Bloomberg/Reuters are useful references.
Why does PE re-rating happen?
When market expects higher future growth, it pays a higher PE multiple. A company growing at 25% might see PE expand from 20x to 35x, giving investors both earnings growth AND multiple expansion.