Peter Lynch's formula is:
O Fair Value
= Earnings Growth Rate x TTM EPS
O Fair Value
= 25.00 x 0.97
O Fair Value
= 24.22
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 | ||||||
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 5Y Avg | |
| Net income | 436.50 | 395.50 | 359.46 | 869.41 | 872.31 | 586.63 |
| YoY growth | 20.05% | -9.39% | -9.11% | 141.87% | 0.33% | 28.75% |
