Future Value / Present Value Calculator

Yahoo! Finance is a good place to get EPS numbers, analyst estimates, and other good financial information. With "Expected annual EPS growth rate," you are essentially entering what annual percentage growth rate you expect the company to grow earnings at in the time frame you provide. (So, if you expect the company to grow earnings at 15% annually for five years, you'd put 15 in "Expected annual growth rate" and 5 in "Number of years".) With "P/E multiple expected," enter the P/E you believe the stock will have at the end of the time frame you provide.

The discount rate is the minimum annual percentage of return you want with your investment. So, if you want a minimum 12% return on your investment, enter 12 in "Discount Rate."

The Future Value (FV) is the price the stock will be at if it meets your EPS growth rate and P/E estimates. The Present Value (PV) is the maximum price you must buy the stock at if you want to make your required rate of return, assuming that it meets the Future Value criteria. (If you calculate a stock's future value to be $20 in five years and you want an average 10% return annually on your investment, you must buy the stock at $10 or lower.)

Do not enter symbols (such as %, $, etc.) into the calculator.

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Company (optional)
Current EPS
Expected annual EPS growth rate
Number of years
P/E Multiple expected
Discount Rate
Results
Future EPS
Future Value (FV)
Present Value (PV)

This calculator was originally created by Adib Motiwala.

Future Value Lesson