Stock Price & Target Valuation Calculator

How to Calculate: Formula & Steps

Projects EPS forward by annual compound growth rate, multiplies by target terminal P/E, and discounts back to present value at required return rate.

Step-by-Step Calculation Example

A stock with $4.00 EPS growing at 12% annually for 5 years reaches $7.05 EPS. At a 20x P/E, future target price is $141.00. Discounted at 10%, fair value today is $87.55.

Inputs and Assumptions

Enter values that match your project or situation. The calculator uses the following fields and defaults; update them before relying on the estimate.

Current EPS ($)

Default: 4 $

Est. Annual EPS Growth (%)

Default: 12 %

Target Exit P/E Multiple

Default: 20 x

Investment Horizon (Years)

Default: 5 yrs

Required Return / Discount Rate (%)

Default: 10 %

Common Mistakes to Avoid

• Assuming unsustainable hyper-growth rates (>25%) over long 5-10 year horizons.

Practical Use Cases

• Fundamental stock valuation and analysis
• Setting target buy prices and profit-taking exits