Formula
(This period EPS - last period EPS) / last period EPS. Use diluted EPS and the same adjustment for exceptional items in both periods.
What it means
EPS growth is profit growth per share. It is the growth rate that matters to an existing shareholder, because new shares dilute it.
A company can grow PAT and still grow EPS more slowly if it issued shares to pay for that profit.
How to read it
Sustained mid-teens EPS growth, without a rising debt load or a shrinking share of cash conversion, is a strong fundamental record.
What to watch
Buybacks, a tax-rate cut, and a one-time gain all lift EPS growth. Strip them out before you drop the rate into a PEG ratio or a valuation model.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.