Stock Price & Target Valuation Calculator
Calculate projected future stock price targets and present fair intrinsic value using EPS and P/E ratio valuation models.
Interactive Calculator
1. Provide Details
$
%
x
yrs
%
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)^YearsStep-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.
Frequently Asked Questions About Stock Price & Target Valuation Calculator
What P/E ratio should I use for valuation?
Use historical median P/E for mature companies (15-20x) or industry peer group averages.
You May Like
Construction & Landscaping
How Much Topsoil Do I Need? A Complete Landscaping Guide
Construction & Landscaping
Fill Dirt vs. Topsoil: Differences, Uses & When to Use Which
Construction & Landscaping
Topsoil Cost Guide: Price Per Cubic Yard, Delivery, and Bags
Construction & Landscaping