Fair price calculator

Current Sales ($)in millions USD

Market Size ($)i.e. total industry sales generated in the same target market in millions USD

Expected Market Growth (%)

Expected Market Shares Growth (%)e.g. set to 0% if you want to keep the same market share

Expected Gross Margin (%)i.e. 100*(Revenue - COGS)/Revenue

Expected Net Income / Gross Profit (%)i.e. 100*netIncome/(Revenue - COGS)

Expected Payout Ratio (%)i.e. 100*Dividends/netIncome

Expected Shares Outstandingin millions

Fair Dividend Yield (%)

Result

Assuming a market size of 10000 millions $ if the market grows by 20% and the company's market share grows by 15% ( starting from a current market share of 8% ), with a gross margin of 30% , a net income being 10% of the gross profit, a payout ratio of 25% and a total of 100 millions shares, the expected dividend per share equals 0.08 $. Therefore, if your fair target dividend yield is 6 % you should buy the stock at 1.38 $.

Fair price

1.38 $