Hi everyone,
I had a question re the earnings growth value calculation I have seen online. As I read it, It’s essentially multiplying the annual growth rate times the EPS to arrive at a fair value.
Can anyone give suggestions on calculating the annual growth rate? Is there a simple calculation that can be done to find the percentage?
How many years are we supposed to typically reference? Math has never been my strong suit.
UNFI has been the company I am looking at. 3.5 EPS estimates for 2021. Guidance given for 2024 at 5.25 a share. Would we be able simply calculate an estimated fair value based upon this guidance and the 2021-2024 period?
Thanks for your help.
Submitted July 26, 2021 at 10:57PM by tripmcnealy223 https://ift.tt/2UVMIuO
