What Percentage of Lexmark’s Stock Price Can Be Attributed To Growth?
In this analysis, we quantify the percentage of Lexmark’s (NYSE:LXK) stock that can be attributed to growth.
We know, that a stock’s valuation can be highly influenced by future expectations of earnings growth. However, in theory, if a company sees no growth opportunities it should distribute all its earnings as dividends to its shareholders. Assuming that a company pays all earnings as dividends for the rest of the period, we can calculate Present Value of Growth Opportunity (PVGO) of a stock from the formula given below:
Relevant Articles
- Lexmark Earnings: Revenue Decline Across Printer Division Continues
- Lexmark Pre Earnings: Printer Revenue To Decline, Software Revenue To Report Growth
- Lexmark Earnings: Revenue Declines Less Than Expected As Merger And Delisting Seems Eminent
- Lexmark Earnings Preview: Decline In Revenue To Continue
- Lexmark Earnings: Revenue Declines More Than Expected
- What has Been The Key Driver For Lexmark’s Enterprise Revenue Over The Past Two Years?
Have more questions about Lexmark? See the links below.
- What’s Lexmark’s Revenue And Earnings Breakdown?
- What’s Lexmark’s Fundamental Value Based On Expected 2015 Results?
- By What Percentage Did Lexmark’s Revenues And EBITDA Decrease In The Last Five Years?
- How Has Lexmark’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Can Lexmark’s Revenues And EBITDA Grow In The Next 3 Years?
- How Have The Software Division Revenues And EBITDA Grown Since The Acquisition Of Perceptive In 2010?
- How Big Can Lexmark’s Perceptive Business Become By 2020?
- How Has Lexmark’s Laser Printer Price Declined In The Last Five Years?
- How Will Lexmark’s Laser Business Fare Till 2020?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Lexmark