As of 2025-07-08, the Fair Value of Farmmi Inc (FAMI) is -93.09 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1.81 USD, the upside of Farmmi Inc is -5233.1%.
With the market price of 1.81 USD and our fair value calculation, Farmmi Inc (FAMI) is not a good investment. Investing in FAMI stocks now will result in a potential loss of 5233.1%.
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 | ||||||
09-2020 | 09-2021 | 09-2022 | 09-2023 | 09-2024 | 5Y Avg | |
Net income | 0.82 | 2.36 | 2.22 | 2.54 | -4.65 | 1 |
YoY growth | 364.5% | 187.8% | -5.9% | 14.6% | -283% | 55.6% |
Market Cap (mil) | 2 |
P/E | - |
Forward P/E | - |
EPS | -3.72 |
Avg earnings growth rate | 55.6% |
TTM earnings | -5 |
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.