Laxputs Posted May 9, 2014 Share Posted May 9, 2014 Is there anything wrong with doing approximate math on a growth stock like this: Earnings are 4000. Grows at 10% for 10 years. Earnings in year 10 will be 11640. 11640 / current shares = 25. 25 x multiple of 15 = 375. If we knew those were the numbers, what is the stock worth today? 375? Or is this where we add in a discount rate? Thanks. Link to comment Share on other sites More sharing options...
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