How to Calculate Market Analysis
Market analysis is crucial for understanding a company’s value and potential. Our calculator simplifies this process.
- Enter the market capitalization, price-to-earnings ratio, and expected growth rate.
- Click ‘Calculate’.
- View the results and chart below.
The calculator uses the Gordon Growth Model:
Intrinsic Value = (Earnings per Share * (1 + Growth Rate)) / (Discount Rate – Growth Rate)
| Company | Market Cap | P/E Ratio | Growth Rate | Intrinsic Value |
|---|---|---|---|---|
| Apple | $2.1T | 35.6 | 10% | $176.45 |
| Year | Average P/E Ratio | Average Growth Rate |
|---|---|---|
| 2020 | 25.3 | 7.2% |
- Consider using a lower growth rate for mature companies.
- Be aware of the assumptions behind the Gordon Growth Model.
What is market capitalization?
Market capitalization is the total value of a company’s outstanding shares.