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EPS CAGR 3Y

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EPS CAGR 3Y is the metric used to the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when EPS CAGR 3Y aligns with the rest of the VM.

Javier Sanz, Founder & Lead Analyst at ValueMarkers
By , Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz

Formula

Cost of Goods Sold / Average Accounts Payable

Description

Measures how quickly a company pays its suppliers. Lower payables turnover means the company takes longer to pay, conserving cash. However, extremely low turnover may strain supplier relationships. It is the inverse of DPO expressed as a ratio.

Interpretation

Below 12 is generally favorable for cash management. Very low payables turnover (below 4) may indicate the company is stretching payments too far. Rising turnover means the company is paying faster, which reduces working capital efficiency.

Related metrics: Revenue Growth 1Y. (Updated 2026)

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Further Reading

FAQ

How is EPS CAGR 3Y calculated?+
EPS CAGR 3Y uses the formula: Cost of Goods Sold / Average Accounts Payable. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using Multi-year SEC filings + Damodaran growth-rate datasets.
What is a good EPS CAGR 3Y value by sector?+
There is no single 'good' value for EPS CAGR 3Y — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for EPS CAGR 3Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use EPS CAGR 3Y?+
Peter Lynch, Philip Fisher, Bill Miller cite EPS CAGR 3Y as a key input to to size durable revenue and free cash flow expansion. The academic anchor is Mauboussin's 'measuring the moat' framework. ValueMarkers weights this within the Growth pillar of the VMCI score (12% of total).
What are the limitations of EPS CAGR 3Y?+
EPS CAGR 3Y can mislead in high growth at unsustainable unit economics (cash-burn traps). Pair EPS CAGR 3Y with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live EPS CAGR 3Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live EPS CAGR 3Y data, sector percentiles, and the VMCI composite score that integrates EPS CAGR 3Y with 119 other indicators across 100,000+ stocks. The free /screener exposes EPS CAGR 3Y as a filterable column.

Related Growth Indicators

Revenue Growth 1YSGA/Rev

Revenue Growth 1Y measures the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when Revenue Growth 1Y aligns with the rest of the VMC.

Revenue CAGR 3YR&D/Rev

Revenue CAGR 3Y expresses the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when Revenue CAGR 3Y aligns with the rest of the VMCI 1.

Revenue CAGR 5YOpEx Ratio

Revenue CAGR 5Y expresses the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when Revenue CAGR 5Y aligns with the rest of the VMCI 1.

EPS Growth 1YRev/Employee

EPS Growth 1Y expresses the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when EPS Growth 1Y aligns with the rest of the VMCI 120-i.

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