Note: This calculator estimates intrinsic value based on EPS, growth rate, and PEG ratio.
What is the Peter Lynch Calculator?
The Peter Lynch Calculatorhelps investors estimate a company’s fair value based on its
Price-to-Earnings (P/E) ratio and expected earnings growth rate.
Inspired by legendary investor Peter Lynch, this method provides a simple yet effective
way to identify undervalued or overvalued stocks.
Peter Lynch Fair Value Formula
Fair Value =
(Earnings Growth Rate + Dividend Yield)P/E Ratio
× Current Price
This formula estimates a stock’s fair price based on growth and yield potential. If the fair value is higher than
the current price, it suggests the stock may be undervalued; if lower, it could be
overvalued.
Key Inputs
Current Price — The stock’s latest market price
P/E Ratio — The company’s price-to-earnings ratio
Earnings Growth Rate (%) — The expected annual earnings growth
