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EPS Growth 1Y

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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.

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

Formula

Total Revenue / Number of Employees

Description

Measures workforce productivity and the scalability of the business model. High revenue per employee indicates the company can grow without proportionally increasing headcount. Technology companies with platform business models tend to lead on this metric.

Interpretation

Above $300K is generally strong. Technology and energy companies often exceed $500K. Labor-intensive businesses like retail or hospitality may fall below $100K. Compare within industry for meaningful benchmarks.

Related metrics: Revenue Growth 1Y, Revenue CAGR 3Y. (Updated 2026)

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Further Reading

FAQ

How is EPS Growth 1Y calculated?+
EPS Growth 1Y uses the formula: Total Revenue / Number of Employees. S&P 500 EPS growth averages 8% over the cycle. 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 Growth 1Y value by sector?+
There is no single 'good' value for EPS Growth 1Y — context is sector-driven. S&P 500 EPS growth averages 8% over the cycle. The /screener exposes sector-relative percentiles for EPS Growth 1Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use EPS Growth 1Y?+
Peter Lynch, Philip Fisher, Bill Miller cite EPS Growth 1Y 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 Growth 1Y?+
EPS Growth 1Y can mislead in high growth at unsustainable unit economics (cash-burn traps). Pair EPS Growth 1Y 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 Growth 1Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live EPS Growth 1Y data, sector percentiles, and the VMCI composite score that integrates EPS Growth 1Y with 119 other indicators across 100,000+ stocks. The free /screener exposes EPS Growth 1Y as a filterable column.

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