As of 2024-12-15, the Fair Value of Anavex Life Sciences Corp (AVXL) is -2.45 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 8.46 USD, the upside of Anavex Life Sciences Corp is -128.9%.
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 | ||||||
09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | 5Y Avg | |
Net income | -26.29 | -26.28 | -37.91 | -47.98 | -47.51 | -37 |
YoY growth | -52.4% | 0% | -44.3% | -26.6% | 1% | -24.4% |
Market Cap (mil) | EPS | Fair Value | Upside | ||
a | |||||
Anavex Life Sciences Corp | 717 | -0.5 | -2.45 | -128.9% | |
Abbvie Inc | 306,369 | 2.9 | 52.66 | -69.6% | |
Amgen Inc | 145,466 | 7.9 | 39.35 | -85.5% | |
Regeneron Pharmaceuticals Inc | 80,363 | 42.4 | 1,058.9 | 44.8% | |
Inhibrx Inc | 212 | 113.4 | 566.93 | 3777.8% |
Market Cap (mil) | 717 |
P/E | - |
Forward P/E | - |
EPS | -0.49 |
Avg earnings growth rate | -24.4% |
TTM earnings | -42 |
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.