Peter Lynch's formula is:
3M Fair Value
= Earnings Growth Rate x TTM EPS
3M Fair Value
= 5.00 x 1.72
3M Fair Value
= 8.58
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 | 4,517.00 | 5,449.00 | 5,921.00 | 5,777.00 | -6,995.00 | 2,933.80 |
| YoY growth | -15.55% | 20.63% | 8.66% | -2.43% | -221.08% | -41.95% |
