This tool helps answer the questions:
  1. How can I efficiently value a stock using fundamental analysis, based on EPS and its growth, without feeding unessential accounting variables or economic assumption in a discounted cash flow (DCF) model?
  2. How can I not get lost in ambiguous stock recommendation from brokers, advisors, bloggers, and youtubers? Are their estimates realistic, or too optimistic?
  3. Am I prepared for the risk due to rising interest rate or downturn growth? Can I estimate how sensitive the price may go down?
Company Earnings (EPS)
clear
Compan lifecycle stage
Company lifecycle stage
Manually fill EPS for year(s)
Next 12-month EPS
2nd-year EPS
3rd-year EPS
Subsequent EPS growth / year
, applied for Input the years that the growth will continue for, until the end of high-growth stage years.
Mature-stage EPS growth / year
Discount rate assumption
Risk-free rate reference
US Treasury Yields
(as of )
1 year
3 year
5 year
10 year
30 year
Risk-free rate input 10-year Treasury yield is commonly used in valuation practice
Equity risk premium
Typical equity risk premium is around 2% to 8%, affected by the following factors:
  • When the stock market is at panic situation, or when investors' risk appetite is low (unwilling to take the risk), the risk premium would be higher.
  • When the market is overheated, or investors' risk appetite is high (willing to take more risk), the risk premium would be lower.
  • When a company has more volatile earnings, it would have higher risk premium.
Required rate of stock
This stock's fair price
Price sensitivity
EPS growth achieved x x
Interest rate change
Stock fair price change to
Value change