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FORE — Forecasted Returns Estimator

Stock Return Forecast Calculator

Estimate the expected CAGR from a stock based on EPS growth and P/E re-rating. Uses the formula:Future Price = Current EPS × (1+g)ⁿ × Exit P/E

Input your assumptions

Current P/E: 10.8×
Historical Nifty 50 EPS CAGR: ~12–14%. Use company-specific estimate.
Conservative: 15–20×. Fair: 20–25×. Premium: 30×+.
Expected CAGR (price only)
26.6%
✅ Beats Nifty 50 long-term average (~12%)
With dividends: 27.1% CAGR

Return breakdown

Current EPS₹72
Future EPS (after 5yr at 12% growth)₹126.89
Future Price (EPS × Exit P/E 20×)₹2,538
Dividend income (5yr × 1.2% yield)₹47
Total return (price + dividends)231.4%
Current P/E10.8×
P/E change (10.8× → 20×)+9.2×
How FORE works

FORE (Forecasted Returns Estimator) uses the Peter Lynch / Benjamin Graham earnings power formula:

Future Price = EPS × (1+g)ⁿ × Exit P/E

Two drivers of return: (1) EPS growth and (2) P/E expansion/contraction. If you pay 30× P/E for a company and it re-rates to 20×, that alone is a -33% loss even if EPS grows.

⚠️ This is a simplified model — does not account for dilution, debt changes, or sector rotation.

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