HOW TO ESTIMATE A STOCK PRICE AFTER 5 YEARS

Simple framework: 1. Take Current EPS Example: ₹10 2. Estimate EPS Growth Rate Suppose company grows earnings at 15% CAGR. 3. Calculate Future EPS Future EPS after 5 years: ₹10 × (1.15)^5 = ~₹20 4. Estimate Future P/E Multiple Suppose fair P/E after 5 years = 25 5. Estimated Share Price Future EPS × Future P/E ₹20 × 25 = ₹500 That’s how many long-term investors roughly estimate future stock potential. But remember: • High growth sectors usually get higher P/E • Mature sectors get lower P/E • Cyclical businesses need different assumptions This is NOT guaranteed. Future growth, valuations and market conditions can change. Always calculate based on the company’s sector, industry structure and business quality.