Peter Lynch's formula is:
LPLA Fair Value
= Earnings Growth Rate x TTM EPS
LPLA Fair Value
= 25.00 x 15.44
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 |
439.50 |
559.90 |
472.60 |
459.90 |
845.70 |
555.52 |
| YoY growth |
83.97% |
27.39% |
-15.59% |
-2.69% |
83.89% |
35.39% |