Peter Lynch's formula is:
VPG Fair Value
= Earnings Growth Rate x TTM EPS
VPG Fair Value
= 25.00 x 2.24
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 |
23.60 |
22.20 |
10.80 |
20.20 |
36.10 |
22.58 |
| YoY growth |
65.03% |
-5.93% |
-51.35% |
87.04% |
78.71% |
34.70% |