EPS Share Value Forecaster

Professional share value assessment

Assess share values like a pro – quick and simple.

In short

EPS Share Value Forecaster provides everyone access to a share value assessment mechanism commonly used by institutional investors. The simple and quick application calculates net present value estimates based on earnings per share and organic growth assumptions. The estimates enable the investor to evaluate how well current market prices reflect the performance expectations of any company.

Steps

Follow these simple steps to get results with share valuation.

1. Estimate

Enter one to five EPS forecasts and an organic growth assumption. Benefit from EPS forecasts published by analyst companies or use the included EPS calculators based on mandatory financial statement items or interim reports. Learn more…

2. Calculate

Click “Calculate” for instant reference prices covering expected return percentages between 5% and 20%.  Reference prices are displayed in an intuitive chart covering scenarios where the EPS forecasts falls short or exceed the expected value by 25% or 50%.

3. Act

While there is no such thing as a correct answer to EPS or growth forecasts, a rough consensus can often be detected from analyst estimates. The wide usage of similar assessment methods leads to a self-fulfilling prophecy scenario, where the market share price tends to converge towards the reference price. The key is to keep a step ahead of this convergence!

EPS Estimates

Understand EPS Estimates.

For stable companies, realized values are a useful base for EPS estimates. While not mandatory, many companies publish EPS values directly on financial statements. The application also includes useful EPS calculators based on mandatory financial statement items or interim reports.

Several analyst companies publish EPS estimates. For added value, these estimates may incorporate expected changes related to the company, competitive position or the general outlook of the industry.

Organic growth refers to the long-term annual growth. It is not affected by expected changes in the near future which are included in the EPS forecasts. Organic growth is often tightly linked with the growth assumption of the whole industry. An organic growth exceeding the industry expectation means that the company is expected to grow faster than the industry on average.

EPS Share Valuation Example

EPS Share Value Forecaster enables quick share price valuation of any company using forecasts published by well-known analysts. An example valuation is performed for the pharmaceutical company Pfizer. Worldwide demand for Pfizer’s COVID vaccination led to a significant share price increase throughout 2022. The share price has dropped from around 50 USD in the beginning of 2023 to around 30 USD by December 2023. However, the company continues to be one of the big players in the pharmaceutical industry.

Many analyst companies track Pfizer shares. In this example, forecasts from SimplyWall.st and Nasdaq are used.

Step 1. Determine Pfizer’s performance capabilities

Learn more about Pfizer’s business profitability at:

Step 2. Find the most reliable EPS forecasts for the coming years

Review continuously updated Pfizer EPS forecasts at:

Step 3. Enter the EPS forecasts into EPS Share Value Forecaster

The valuation chart shows that the current share price of 29 USD corresponds to an approximate 11% return on investment, which can be considered pretty good for a large and stable company.