Expected Return (Historic Growth)

What is the definition of Exp. Return (Hist Gwth)?

According to Mary Buffett's "Buffetology", this can be calculated as follows:

  • Calculate the EPS in year 10 by compounding the current EPS by the historical growth rate over the last 10 years.
  • This forecast value can then be multiplied by the 10 year average PE ratio to provide an estimate of the price in year 10.
  • If dividends are paid, an estimate of the amount of dividends paid over the 10-year period should also be added to the year 10 prices.
  • This value can then be compared with the current price to determine if the expected rate of return is greater than Buffett's threshold return of 15%.

Stockopedia explains Exp. Return (Hist Gwth)...

For more details on this approach, read our synopsis of Buffetology


Which Guru Screens is Exp. Return (Hist Gwth) used in?

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis