Peter Lynch's formula is:
FAF Fair Value
= Earnings Growth Rate x TTM EPS
FAF Fair Value
= 11.82 x 2.29
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 |
474.50 |
707.40 |
696.40 |
1,241.00 |
263.00 |
676.46 |
| YoY growth |
12.17% |
49.08% |
-1.55% |
78.20% |
-78.81% |
11.82% |