Peter Lynch's formula is:
BRK.B Fair Value
= Earnings Growth Rate x TTM EPS
BRK.B Fair Value
= 25.00 x 31.45
BRK.B Fair Value
= 786.13
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 | 81,417.00 | 42,521.00 | 89,937.00 | -22,759.00 | 96,223.00 | 57,467.80 |
| YoY growth | 1,924.79% | -47.77% | 111.51% | -125.31% | 522.79% | 477.20% |
