As of 2025-07-04, the Fair Value of Alpha Real Trust Ltd (ARTL.L) is -39.7 GBP. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 202.5 GBP, the upside of Alpha Real Trust Ltd is -119.6%.
With the market price of 202.5 GBP and our fair value calculation, Alpha Real Trust Ltd (ARTL.L) is not a good investment. Investing in ARTL.L stocks now will result in a potential loss of 119.6%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
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 average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
Historical Earnings | ||||||
03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | 5Y Avg | |
Net income | 3.52 | 0.02 | 8.16 | 0.63 | -0.93 | 2 |
YoY growth | -84.4% | -99.4% | 40700% | -92.3% | -247.2% | 8035.3% |
Market Cap (mil) | 118 |
P/E | - |
Forward P/E | - |
EPS | -1.59 |
Avg earnings growth rate | 8035.3% |
TTM earnings | -1 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.