Perform Discount Earnings Analysis

Let's do a Discount Earnings Analysis for Robinhood!

Assumptions:

• 30% EPS growth rate for 5 years (spicy, I know)

• Minimum Acceptable ROI: 15% (my personal goal)

• Historic PE: 56 (low sample size, only 7 reporting periods of >0 PE)

Which yields a fair value of $216.99, up almost 2x from current stock price of $124

Link to Google Sheet

That was a little too bullish for me, let's calm it down to a 15% EPS growth rate

That makes more sense, given the current stock price.

Sentiment: slightly bullish