Year-on-year growth rate of basic earnings per share for the rolling twelve months
factor.formula
TTM basic EPS year-on-year growth rate:
illustrate:
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Basic rolling twelve month (TTM) EPS for the current reporting period (t).
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Rolling twelve month (TTM) basic EPS for the same period last year (T-12m).
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The absolute value function ensures that the denominator is a positive number, avoids division by zero errors, and makes the year-on-year change rate more intuitive.
factor.explanation
This factor calculates the year-on-year growth rate of basic earnings per share based on the rolling 12 months (TTM) rather than single-quarter data. This method smooths out quarterly fluctuations and better reflects the company's true earnings trend. In quantitative investment, year-on-year growth rate is a common indicator to measure a company's growth, especially when the company's business has obvious seasonal fluctuations. Using the absolute value as the denominator can prevent the growth rate from being extreme or meaningless when the EPS of the same period last year is negative. This factor is suitable for finding growth stocks with continued profitability growth, and can be used in combination with other growth indicators to build a more robust investment strategy. It is worth noting that this factor is more sensitive to outliers in profitability indicators. In actual use, it needs to be combined with other fundamental indicators and industry characteristics for comprehensive consideration.