1. What is the 1 Year Target Price?

The 1 Year Target Price is a projected stock price calculated based on the current price and expected growth rate. It helps investors estimate potential future stock performance and make informed investment decisions.

2. How Does the Calculator Work?

The calculator uses the target price formula:

Where:

• \( \text{Current Price} \) — Current stock price in USD
• \( \text{Expected Growth Rate} \) — Expected annual growth rate as a decimal (e.g., 0.15 for 15%)

Explanation: This formula projects the stock price one year ahead by applying the expected growth rate to the current price.

3. Importance of Target Price Calculation

Details: Target price calculation is essential for investment analysis, portfolio management, and risk assessment. It helps investors set realistic expectations and make strategic buy/sell decisions.

4. Using the Calculator

Tips: Enter the current stock price in USD and the expected growth rate as a decimal. For example, for 15% growth rate, enter 0.15. All values must be valid (current price > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a reasonable expected growth rate?
A: Growth rates vary by industry and company. Typically, 5-15% for established companies, while growth companies may have higher rates. Research industry averages for guidance.

Q2: How accurate are target price projections?
A: Target prices are estimates based on assumptions. Actual results may vary due to market conditions, economic factors, and company performance.

Q3: Should I use this for all investment decisions?
A: This is one tool among many. Consider other factors like company fundamentals, market trends, and risk tolerance before making investment decisions.

Q4: Can negative growth rates be used?
A: Yes, negative growth rates (e.g., -0.10 for -10%) can be used to project price declines.

Q5: How often should I recalculate target prices?
A: Recalculate when there are significant changes in company performance, market conditions, or quarterly earnings reports.