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FORE โ€” 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 ร— (1+g)โฟ ร— Exit P/E

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

Return breakdown

Current EPSโ‚น72
Future EPS (after 5yr at 12% growth)โ‚น126.89
Future Price (EPS ร— Exit P/E 20ร—)โ‚น2,538
Dividend income (5yr ร— 1.2% yield)โ‚น47
Total return (price + dividends)231.4%
Current P/E10.8ร—
P/E change (10.8ร— โ†’ 20ร—)+9.2ร—
How FORE works

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

Future Price = EPS ร— (1+g)โฟ ร— Exit P/E

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

โš ๏ธ This is a simplified model โ€” does not account for dilution, debt changes, or sector rotation.

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