As of 2024-12-13, the Fair Value of EKOBOT AB (publ) (EKOBOT.ST) is -8.35 SEK. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.09 SEK, the upside of EKOBOT AB (publ) is -9178.5%.
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 | ||||||
12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | 5Y Avg | |
Net income | -0.77 | -3.96 | -7.07 | -10.41 | -21.21 | -9 |
YoY growth | -292.5% | -414.3% | -78.5% | -47.2% | -103.8% | -187.3% |
Market Cap (mil) | EPS | Fair Value | Upside | ||
a | |||||
EKOBOT AB (publ) | 2 | -1.7 | -8.35 | -9178.5% |
Market Cap (mil) | 2 |
P/E | - |
Forward P/E | - |
EPS | -1.67 |
Avg earnings growth rate | -187.3% |
TTM earnings | -39 |
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.