Formulas

Undervalued and Overvalued calculations

A company's Projected P/E (PE) is calculated as Undervalued or Overvalued relative to an average projected PE of relevant Sector or Industry companies in the database. The Undervalued formula used is (PE,a - PE,c)/PE,c and the Overvalued formula used is (PE,c - PE,a)/PE,a where PE,a = Projected PE average of selected Sector or Industry companies and PE,c = Projected PE of the company.

A company's Projected P/E to Growth (PEG) is calculated as Undervalued or Overvalued relative to an average PEG of relevant Sector or Industry companies in the the database. The Undervalued formula used is (PEG,a - PEG,c)/PEG,c and the Overvalued formula used is (PEG,c - PEG,a)/PE,a where PEG,a = PEG average of selected Sector or Industry companies and PEG,c = PEG of the company.

Projected Stock Price calculations

Projected Stock Price of the Company based on the Projected PE = P,c,pe = EPS,c * PE,a where EPS,c is the Projected Earnings per Share of the Company and PE,a is the average Projected PE of the corresponding Industry or Sector that the Company is in.

Projected Stock Price of the Company based on the PEG = P,c,peg = G,c * PEG,a = where G,c is the Projected Growth rate of the Company and PEG,a is the PEG of the corresponding Industry or Sector that the Company is in.

Projected Growth Rate of the Company calcuation

Projected Growth rate of the Company = G,c = PE,c/PEG,c where PE,c is the Projected PE of the Company and PEG,c is the PEG of the Company.

 

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