What this calculator does
PVGO (present value of growth opportunities) works out how much of a stock’s price reflects expected future growth, versus current earnings alone. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Current share price ($) | A number, measured in your currency. Starts at 60. |
| Earnings per share ($) | A number, measured in your currency. Starts at 4. |
| Cost of equity (required return) (%) | A number, measured in %. Starts at 10. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with current share price
Every other input is held at the calculator’s starting values while current share price varies. Select any row to load that scenario into the calculator.