Peter Lynch's formula is:
AL Fair Value
= Earnings Growth Rate x TTM EPS
AL Fair Value
= 5.00 x 4.85
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 |
|
|
|
2018-12-31 |
2019-12-31 |
2020-12-31 |
2021-12-31 |
2022-12-31 |
5Y Avg |
Net income |
510.80 |
587.10 |
516.30 |
436.60 |
-97.00 |
390.76 |
YoY growth |
-32.45% |
14.94% |
-12.06% |
-15.44% |
-122.22% |
-33.45% |