Markets & Investing
Earnings valuation scenarios
Use this earnings valuation scenarios calculator to project EPS under an entered growth assumption and compare low, base and high P/E multiples.
Your inputs
Complete only the fields for your selected method. Use one consistent job or reporting period. Zero means intentionally zero, not unknown. Missing costs and market rates are not added automatically. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
future EPS = positive starting EPS × (1+growth)^years; scenario price = future EPS × assumed P/E
Constant assumed EPS growth, positive starting EPS, no dilution or share-count changes beyond what is already represented in EPS. These are future nominal price scenarios, not present values or price targets. Multiples and growth are supplied, not market estimates. Educational arithmetic from entered figures, not an investment recommendation, valuation opinion, forecast or guarantee. Taxes, inflation and foreign-exchange changes are excluded unless explicitly entered. Use one currency throughout; currency selection only changes labels.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Starting positive annual EPS (currency per share): Use matching records or an explicitly identified assumption for starting positive annual eps. Unknown is not the same as zero.
- Assumed annual EPS growth (%): Use matching records or an explicitly identified assumption for assumed annual eps growth. Unknown is not the same as zero.
- Years to project (years): Use matching records or an explicitly identified assumption for years to project. Unknown is not the same as zero.
- Low scenario P/E (times): Use matching records or an explicitly identified assumption for low scenario p/e. Unknown is not the same as zero.
- Base scenario P/E (times): Use matching records or an explicitly identified assumption for base scenario p/e. Unknown is not the same as zero.
- High scenario P/E (times): Use matching records or an explicitly identified assumption for high scenario p/e. Unknown is not the same as zero.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Projected annual EPS is 2.552563 currency per share for the illustrative inputs below.
Example inputs
- Starting positive annual EPS: 2.00 currency per share
- Assumed annual EPS growth: 5.00 %
- Years to project: 5 years
- Low scenario P/E: 10.00 times
- Base scenario P/E: 15.00 times
- High scenario P/E: 20.00 times
- Projected annual EPS
- 2.552563 currency per share
- Low multiple scenario price
- $25.53
- Base multiple scenario price
- $38.29
- High multiple scenario price
- $51.05
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Use this earnings valuation scenarios calculator to project EPS under an entered growth assumption and compare low, base and high P/E multiples.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.