Part 2

How Do I Calculate My Own Price Targets?

For macro and fundamentals strategists, nothing plays as big of a role in coming up with a price target as earnings. The rate at which a company is expected to grow its earnings holds significant sway over the price target by impacting its price-to-earnings ratio.

The P/E ratio divides the share price by earnings per share, which is calculated by dividing the net income minus preferred dividends by the weighted average shares outstanding. The ratio can be calculated for the last twelve month...

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Beginner icon
Beginner
Your Price Target Is Likely Going to be Wrong. Here’s Why You Should Set One Anyway.
3 Lessons
~6 mins in total
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