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Peter Lynch Fair Value Calculator
Invest like Peter Lynch. Find out the fair value of a stock using Peter Lynch's formula. Before buying or selling a stock, find out whether it's undervalued or overvalued to make smart investment decisions.
Investing without research is like playing stud poker and never looking at the cards.
Peter Lynch
Trusted Data Sources
U.S. Securities & Exchange Commission (SEC)
NYSE, NASDAQ
TradingView
NYSE, NASDAQ
MOEX API
MOEX
How It Works
1
Enter stock ticker
Simply fill in the stock ticker field. No other information is required.
2
Automated calculation
The fair value of a share, all necessary coefficient values, the result of the assessment of how much a share is overvalued or undervalued, what is its potential for growth or decline will be calculated automatically based on reliable data.
How We Calculate Fair Value
Lynch Fair Value Formula
We calculate fair value using the following version of Peter Lynch's formula. Peter Lynch's fair value per share = Earnings Growth Rate * Basic Earnings per Share (EPS).
Basic Earnings per Share, EPS
We use the Earnings per Share Trailing Twelve Months (EPS TTM) ratio in Peter Lynch's formula.
Earnings Growth Rate
The Earnings Growth Rate formula is Coumpond Anual Growth Rate (CAGR) of Net Income over the past 5 years.
Final Result of Fair Value Calculation
We automatically calculate the fair value of a share, its potential for growth or decline, and assess whether the share is undervalued or overvalued.
What to Do After Valuation
1
Do your own research
"Always do your homework", said Peter Lynch. Conduct your own research. He claimed that two hours is enough to research each company. For example, it's helpful to understand whether the company has a market moat compared to competitors in its industry, the reasons for its profit growth, the sustainability or instability of profit growth, the level of debt, the size of dividends and cash flow, the proportion of institutional investors, and whether insiders are buying shares.
2
Calculate the fair value through different valuation methodologies
Consider other ways to determine the fair value, such as discounted cash flow (DCF), relative analysis.
Examples
Explore our collection of ideas.