Financial Calculators

Stock Price & Target Valuation Calculator

Calculate projected future stock price targets and present fair intrinsic value using EPS and P/E ratio valuation models.

Reviewed by David Miller, CPA (CPA, M.S. Finance (NYU Stern))

Verified for accuracy•Updated 2026

Interactive Calculator

1. Provide Details

Current EPS ($)

Est. Annual EPS Growth (%)

Target Exit P/E Multiple

Investment Horizon (Years)

yrs

Required Return / Discount Rate (%)

2. Output Results

Projected Future EPS7.05 $

Projected Target Stock Price140.99 $

Present Fair Entry Value87.54 $

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.

Formula Used:Future Price = Current EPS × (1 + Growth)^Years × Future P/E Ratio; Fair Value = Future Price / (1 + Discount)^Years

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.

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

Expert Tips

Always use conservative EPS growth estimates to maintain a margin of safety against earnings misses.

Disclaimer

This calculation tool is provided for educational and informational estimation purposes only. Results are based on mathematical formulas and user-supplied parameters. They do not constitute formal underwriting, financial, tax, engineering, or legal determinations.