Available Slot
NetGrow

PVGO Calculator

Calculate PVGO (present value of growth opportunities) from stock price, EPS, and required return.

Use the PVGO Calculator

Enter current stock price, EPS, and required return. PVGO and no-growth value are calculated.

Inputs

Current stock price (P0), EPS, and required rate of return (r).

Results

No-growth value
$20
EPS / r
PVGO
$30
PVGO as % of price
60%

PVGO = P0 minus (EPS / r). Share of price attributed to growth. Higher PVGO % means the market values growth more.

What this metric means

PVGO is the portion of share price attributed to growth. The rest is the value of current earnings in perpetuity (no-growth value).

How to calculate it

No-growth value = EPS ÷ r. PVGO = Current price − No-growth value. PVGO % of price = PVGO ÷ Price × 100.

How to improve the metric

PVGO reflects expectations. To justify high PVGO, deliver growth (revenue, earnings). To reduce reliance on growth, improve current earnings or reduce r."

Common mistakes

Using trailing EPS when forward is more appropriate; using wrong r (e.g. risk-free instead of cost of equity); or comparing across different accounting standards.

How to interpret your result

High PVGO %: stock is growth-heavy—sensitive to growth revisions. Low or negative PVGO: price is more tied to current earnings.

FAQs

What is PVGO?▾
PVGO = P0 − (EPS ÷ r). It's the part of the stock price that reflects growth expectations. No-growth value = EPS ÷ r (perpetuity of current earnings).
What is required return?▾
The discount rate (r) you use for equity—e.g. cost of equity or your hurdle rate. Often derived from CAPM or comparable returns.
Can PVGO be negative?▾
Yes. If the market price is below no-growth value, PVGO is negative—the market is discounting expected decline or risk.
Why use it?▾
It separates how much you're paying for current earnings vs growth. High PVGO % means the stock is priced for strong future growth.

Related tools

Browse all calculators on NetGrow.

NetGrow

PVGO Calculator

Calculate PVGO (present value of growth opportunities) from stock price, EPS, and required return.

Use the PVGO Calculator

Enter current stock price, EPS, and required return. PVGO and no-growth value are calculated.

Inputs

Current stock price (P0), EPS, and required rate of return (r).

Results

No-growth value
$20
EPS / r
PVGO
$30
PVGO as % of price
60%

PVGO = P0 minus (EPS / r). Share of price attributed to growth. Higher PVGO % means the market values growth more.

What this metric means

PVGO is the portion of share price attributed to growth. The rest is the value of current earnings in perpetuity (no-growth value).

How to calculate it

No-growth value = EPS ÷ r. PVGO = Current price − No-growth value. PVGO % of price = PVGO ÷ Price × 100.

How to improve the metric

PVGO reflects expectations. To justify high PVGO, deliver growth (revenue, earnings). To reduce reliance on growth, improve current earnings or reduce r."

Common mistakes

Using trailing EPS when forward is more appropriate; using wrong r (e.g. risk-free instead of cost of equity); or comparing across different accounting standards.

How to interpret your result

High PVGO %: stock is growth-heavy—sensitive to growth revisions. Low or negative PVGO: price is more tied to current earnings.

FAQs

What is PVGO?▾
PVGO = P0 − (EPS ÷ r). It's the part of the stock price that reflects growth expectations. No-growth value = EPS ÷ r (perpetuity of current earnings).
What is required return?▾
The discount rate (r) you use for equity—e.g. cost of equity or your hurdle rate. Often derived from CAPM or comparable returns.
Can PVGO be negative?▾
Yes. If the market price is below no-growth value, PVGO is negative—the market is discounting expected decline or risk.
Why use it?▾
It separates how much you're paying for current earnings vs growth. High PVGO % means the stock is priced for strong future growth.

Related tools

Browse all calculators on NetGrow.