PVGO Calculator

Calculate Present Value of Growth Opportunities for stock valuation analysis

✓ Growth Analysis ✓ Stock Valuation ✓ Investment Insights

PVGO Calculator

Stock Information

Growth Analysis

PVGO Formula

Key Formula:

PVGO = Stock Price - (EPS ÷ Required Return)
No-Growth Value = EPS ÷ Required Return
Growth Contribution = PVGO ÷ Stock Price

Quick Examples

High Growth Tech
$150 stock, $6 EPS, 12% growth
Mature Utility
$80 stock, $8 EPS, 3% growth
Value Stock
$50 stock, $10 EPS, 5% growth

PVGO Interpretation

Positive PVGO: Growth opportunities add value
Negative PVGO: Growth destroys value
High PVGO%: Growth-dependent valuation
Low PVGO%: Value from current earnings
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Understanding PVGO

PVGO (Present Value of Growth Opportunities) measures how much of a stock's current price is attributed to expected future growth versus current earnings.

  • No-growth value: Stock value based on current earnings only
  • Growth premium: Additional value from growth expectations
  • Investment efficiency: Whether growth creates or destroys value
  • Risk assessment: Growth dependency analysis

Investment Applications

Growth Stock Analysis

Evaluate if growth expectations are justified by fundamentals.

Value vs Growth

Compare stocks based on growth contribution to valuation.

Risk Assessment

Higher PVGO indicates greater sensitivity to growth changes.