QualityEPS CAGR 3Y#58
Free Cash Flow per Share Growth 3Y measures how efficiently a company converts capital into earnings.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
(EPS_now / EPS_3y_ago)^(1/3) - 1
Description
Compound annual growth rate of earnings per share over three years. Smooths out single-year volatility and shows the underlying earnings growth trend. This is a key input for PEG ratio calculations and growth-at-a-reasonable-price (GARP) investing.
Interpretation
Above 12% is strong. Compare to revenue CAGR: EPS growing faster than revenue indicates margin expansion or share buyback contribution. EPS growth slower than revenue growth signals margin compression.
Related metrics: Return on Equity (ROE), Return on Assets (ROA). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Free Cash Flow per Share Growth 3Y (FCF/Share CAGR 3Y)- Primary source filings used to calculate Free Cash Flow per Share Growth 3Y (FCF/Share CAGR 3Y).
FAQ
How is Free Cash Flow per Share Growth 3Y calculated?+
Free Cash Flow per Share Growth 3Y uses the formula: (EPS_now / EPS_3y_ago)^(1/3) - 1. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR 10-K + 10-Q filings (segment-level disclosures).
What is a good Free Cash Flow per Share Growth 3Y value by sector?+
There is no single 'good' value for Free Cash Flow per Share Growth 3Y — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Free Cash Flow per Share Growth 3Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Free Cash Flow per Share Growth 3Y?+
Charlie Munger, Joel Greenblatt, Terry Smith cite Free Cash Flow per Share Growth 3Y as a key input to to find compounders with durable economic moats. The academic anchor is Greenblatt (2005) Magic Formula and Mauboussin (2014). ValueMarkers weights this within the Quality pillar of the VMCI score (30% of total).
What are the limitations of Free Cash Flow per Share Growth 3Y?+
Free Cash Flow per Share Growth 3Y can mislead in asset-light businesses where conventional capital ratios mislead. Pair Free Cash Flow per Share Growth 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 Free Cash Flow per Share Growth 3Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Free Cash Flow per Share Growth 3Y data, sector percentiles, and the VMCI composite score that integrates Free Cash Flow per Share Growth 3Y with 119 other indicators across 100,000+ stocks. The free /screener exposes Free Cash Flow per Share Growth 3Y as a filterable column.
Related Quality Indicators
Return on Equity (ROE)Op Margin
Return on Equity measures how efficiently a company converts capital into earnings.
Return on Assets (ROA)Net Margin
Return on Assets is the metric used to how efficiently a company converts capital into earnings.
Return on Invested Capital (ROIC)EBITDA Margin
Return on Invested Capital measures how efficiently a company converts capital into earnings.
Return on Capital Employed (ROCE)FCF Margin
Return on Capital Employed is the metric used to how efficiently a company converts capital into earnings.
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