Peter Lynch's formula is:
Adobe Fair Value
= Earnings Growth Rate x TTM EPS
Adobe Fair Value
= 25.00 x 11.25
Adobe Fair Value
= 281.19
The earnings growth rate we use in the formula is the average growth rate
of net income/earnings over the last 5 years. If the TTM EPS is negative, we do not compute Peter
Lynch's formula for that stock. If the average growth rate is smaller than 5%, we set it to 5%. If
it is larger than 25%, we set it to 25%.
|
Historical Earnings |
|
|
|
2018-11-30 |
2019-11-29 |
2020-11-27 |
2021-12-03 |
2022-12-02 |
5Y Avg |
|
| Net income |
2,591.00 |
2,951.00 |
5,260.00 |
4,822.00 |
4,756.00 |
4,076.00 |
| YoY growth |
52.95% |
13.89% |
78.24% |
-8.33% |
-1.37% |
27.08% |