Peter Lynch's formula is:
EWBC Fair Value
= Earnings Growth Rate x TTM EPS
EWBC Fair Value
= 13.19 x 7.94
EWBC Fair Value
= 104.63
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 5Y Avg | |
| Net income | 674.00 | 567.80 | 873.00 | 1,128.10 | 1,161.16 | 880.81 |
| YoY growth | -4.22% | -15.76% | 53.75% | 29.22% | 2.93% | 13.19% |
