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SASI KUMAR SEBI RA

30th May Β· SEBI-Registered Analyst

HOW TO ESTIMATE A STOCK PRICE AFTER 5 YEARS πŸ“ˆ

Simple framework: 1. Take Current EPS Example: β‚Ή10 2. Estimate EPS Growth Rate Suppose company grows earnings at 15% CAGR. 3. Calculate Future EPS Future EPS after 5 years: β‚Ή10 Γ— (1.15)^5 = ~β‚Ή20 4. Estimate Future P/E Multiple Suppose fair P/E after 5 years = 25 5. Estimated Share Price Future EPS Γ— Future P/E β‚Ή20 Γ— 25 = β‚Ή500 That’s how many long-term investors roughly estimate future stock potential. But remember: β€’ High growth sectors usually get higher P/E β€’ Mature sectors get lower P/E β€’ 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.

#PersonalFinance#FundamentalViews#HiddenGems#Today’sTradingSetup#PsychologyofMoney
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