Expected Return

The Expected Return (Sustainable Growth) estimates the return that an investor might expect on an investment at a given point in time. This version uses the Sustainable Growth rate in the calculation.

Stockopedia explains Exp. Return

According to Mary Buffett's "Buffettology", the sustainable growth rate can be calculated by:

  1. Multiplying the average 10 year rate of return on equity by the average retention ratio (this is 1 - average payout ratio). This calculates the implied sustainable growth rate.
  2. This rate can then be used to calculate the book value per share in year 10.
  3. This in turn determines the 10 year EPS by multiplying the average return on equity by the projected book value per share.
  4. To estimate the future price, you would then multiply the earnings by the average price-earnings ratio (plus any dividends) which then (theoretically!) produces the expected return based on the current price.

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

Ranks: High to LowUnit: %Available in screenerAvailable as Table Column

The 5 highest Exp. Return Stocks in the Market

TickerNameExp. ReturnStockRank™
NAQ:ORGNOrigin Materials59,934.64%17
IST:COSMO.ECosmos Yatirim Holding AS46,502.48%32
NMQ:MSSAMetal Sky Star Acquisition30,402.55%53
NSQ:CLBTCellebrite DI20,286.82%65

Variants of Exp. Return

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