OPEN-SOURCE SCRIPT
Peter Lynch Value (Dynamic Growth)
This indicator implements Peter Lynch's core valuation principle: Fair Price = Earnings Per Share (EPS) * Growth Rate.
It provides a dynamic "fair value" line overlaid on the price chart, allowing traders and investors to quickly assess whether a stock's current price is trading above or below its intrinsic value according to the Lynch method.
Key Features
1. Dynamic Growth Rate Calculation
The indicator uses a custom algorithm to calculate the critical EPS Growth Rate, making it robust against missing data from standard financial fields.
Methodology: It fetches historical TTM Diluted EPS reports (EARNINGS_PER_SHARE_DILUTED, TTM) and calculates the Year-over-Year (YoY) Growth Percentage from the current TTM value versus the TTM value 4 periods prior.
Reliability: This custom calculation ensures the value line appears even when TradingView's pre-calculated growth metrics are unavailable (na).
2. Multiplier Control
P/E Cap: You can enforce a maximum P/E multiplier (maxPE, default 25), preventing the fair value from becoming unrealistically high for extremely fast-growing companies (as Lynch suggested).
Fallback P/E: If insufficient financial history is available to calculate the growth rate, the indicator automatically switches to a user-defined fallbackPE (default 15) and highlights the line in orange as a warning.
3. Smoothing (Optional)
To reduce the volatility often seen in valuation metrics, you can apply an optional Simple Moving Average (SMA) to the Fair Value line. This helps visualize the underlying trend of intrinsic value.
4. Forward Estimate (Optional)
Display an optional projection (circles) based on the analysts' next Fiscal Year EPS Estimate (EARNINGS_ESTIMATE, FY). This shows the potential fair value if the company meets future expectations.
5. Diagnostic Table
A table in the corner provides transparency on the calculation:
Green/Red: Confirms if TTM EPS and Calculated Growth are found.
Final P/E Used: Shows the exact multiplier used (calculated growth or the manual fallback).
Disclaimer: This tool is for informational and educational purposes only and should not be considered financial advice.
It provides a dynamic "fair value" line overlaid on the price chart, allowing traders and investors to quickly assess whether a stock's current price is trading above or below its intrinsic value according to the Lynch method.
Key Features
1. Dynamic Growth Rate Calculation
The indicator uses a custom algorithm to calculate the critical EPS Growth Rate, making it robust against missing data from standard financial fields.
Methodology: It fetches historical TTM Diluted EPS reports (EARNINGS_PER_SHARE_DILUTED, TTM) and calculates the Year-over-Year (YoY) Growth Percentage from the current TTM value versus the TTM value 4 periods prior.
Reliability: This custom calculation ensures the value line appears even when TradingView's pre-calculated growth metrics are unavailable (na).
2. Multiplier Control
P/E Cap: You can enforce a maximum P/E multiplier (maxPE, default 25), preventing the fair value from becoming unrealistically high for extremely fast-growing companies (as Lynch suggested).
Fallback P/E: If insufficient financial history is available to calculate the growth rate, the indicator automatically switches to a user-defined fallbackPE (default 15) and highlights the line in orange as a warning.
3. Smoothing (Optional)
To reduce the volatility often seen in valuation metrics, you can apply an optional Simple Moving Average (SMA) to the Fair Value line. This helps visualize the underlying trend of intrinsic value.
4. Forward Estimate (Optional)
Display an optional projection (circles) based on the analysts' next Fiscal Year EPS Estimate (EARNINGS_ESTIMATE, FY). This shows the potential fair value if the company meets future expectations.
5. Diagnostic Table
A table in the corner provides transparency on the calculation:
Green/Red: Confirms if TTM EPS and Calculated Growth are found.
Final P/E Used: Shows the exact multiplier used (calculated growth or the manual fallback).
Disclaimer: This tool is for informational and educational purposes only and should not be considered financial advice.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.