Peter Lynch's formula is:
RM Fair Value
= Earnings Growth Rate x TTM EPS
RM Fair Value
= 25.00 x 2.63
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 |
35.30 |
44.70 |
26.70 |
88.70 |
51.20 |
49.32 |
| YoY growth |
17.67% |
26.63% |
-40.27% |
232.21% |
-42.28% |
38.79% |