STAEGR is the function that measures the stability or smoothness of the growth in earnings and sales. It is the partner to HGROWTH. HGROWTH measures how fast earnings or sales are growing or decreasing, while STAEGR measures how smoothly this is taking place. It is pronounced ?stay-gar?.
In more technical terms, the function STAEGRTM measures of the stability of the growth of historical data from year to year expressed as a percentage. This data can be any sequence of numbers, ranging from earnings per share to total revenue. Its purpose in Conscious Investor is to measure the stability of earnings and sales per share. The maximum figure of 100 percent represents data that goes up or down by the same percentage each year.
The calculations are based on fitting an exponential curve to the historical data with more emphasis placed on the stability of the growth of recent earnings. Special adjustments are made for negative earnings, for extreme outliers, and for earnings near zero. The calculations also require that there is at least three years with positive earnings.
You can remember the name through STability of Earnings GRowth.
