Estimate the future price per share of a stock based on earnings growth for 1 and 2 years ahead
Enter details to estimate the future price per share of a stock based on earnings growth for 1 and 2 years ahead. All monetary values should be in the stock’s reporting currency (e.g., GHS for Ghanaian stocks).
Target Price Formula
Target Price = EPS × (1 + Growth Rate)t × P/E Ratio
Where EPS is current Earnings Per Share, t is number of years (1 or 2), and P/E is Price-to-Earnings ratio
The target price per share estimates a stock's future value based on its expected earnings growth and current valuation metrics. Here's how to interpret and use it in your investment decisions.
The stock may have upside potential if earnings grow as expected.
The stock may have limited growth or be overvalued at current levels.
Provide the company’s current earnings per share (EPS). Find on Yahoo Finance (“Financials” tab), annualreportsghana.com, or gse.com.gh.
Provide the expected annual growth rate of EPS (e.g., 3–5%). Estimate based on historical growth or analyst forecasts from Yahoo Finance or gse.com.gh.
Provide the company’s current price-to-earnings ratio. Find on Yahoo Finance (“Summary” tab) or afx.kwayisi.org/gse/ for GSE stocks.
Click “Calculate” to compute the target prices for 1 and 2 years ahead. Review the results to assess potential stock value.
To estimate Earnings Per Share (EPS) and Price-to-Earnings (P/E) Ratio, you need reliable financial data. Here’s how to find them for global and Ghanaian stocks:
Find the company’s latest EPS:
Find the company’s current P/E ratio:
Estimate future EPS growth:
Examples: