Peter Lynch's formula is:
Xylem Fair Value
= Earnings Growth Rate x TTM EPS
Xylem Fair Value
= 10.70 x 2.04
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 |
549.00 |
401.00 |
254.00 |
427.00 |
355.00 |
397.20 |
| YoY growth |
65.86% |
-26.96% |
-36.66% |
68.11% |
-16.86% |
10.70% |