Peter Lynch's formula is:
Schwab Fair Value
= Earnings Growth Rate x TTM EPS
Schwab Fair Value
= 13.08 x 2.66
Schwab Fair Value
= 34.77
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 | 3,704.00 | 3,299.00 | 5,855.00 | 7,183.00 | 5,067.00 | 5,021.60 |
| YoY growth | 5.62% | -10.93% | 77.48% | 22.68% | -29.46% | 13.08% |
