Every share price target on ChartMyWealth comes from a stated formula and stated assumptions, so you can check the maths and replace our numbers with your own. This page explains how.

1. One formula per company

For most companies: Target = projected earnings per share (EPS) × price-to-earnings (P/E) multiple. Where a P/E would be misleading, we use a different anchor and say so in the article:

• Book value × price-to-book (P/B) — for banks in a turnaround and cyclical businesses at the bottom of their cycle, where one year’s profit is temporarily depressed.
• Embedded value × P/EV — for life insurers, whose accounting profit understates the value of new policies.
• Revenue × price-to-sales (P/S) — for companies that are loss-making or have only just become profitable.

2. Three scenarios, not one number

Each article shows a bear, base and bull case. Each scenario has an explicit growth rate and multiple, and a one-line explanation of what would have to happen for it to come true. The base case is our central estimate; the range shows how much the outcome depends on the assumptions.

3. Where the numbers come from

• Results: company press releases, exchange filings and earnings-call coverage. Each article links its sources.
• Prices and valuation multiples: exchange closing prices as published by market-data providers, dated in each article.
• Starting earnings: usually trailing twelve-month EPS. When trailing earnings are distorted by one-off items (tax credits, investment gains, legal settlements, write-downs), we remove them or use the current run-rate or company guidance, and say which.

4. Timing convention

Markets price stocks on expected earnings, so a year-end target uses the earnings of the following financial year (for example, the end-2027 target uses FY28 EPS for an Indian company). Book-value and embedded-value targets use the value at the nearest financial year-end.

5. Updates

We review articles after quarterly results and update the data, assumptions and targets. Each article shows its last-updated date. If results had not been published when an article was written, the article says so.

6. What our targets are not

Price targets are scenario estimates based on stated assumptions. They are not recommendations to buy or sell, and they are not personalised investment advice. Markets can move far outside any scenario. Please consult a SEBI-registered investment adviser (in India) or a licensed financial adviser before making investment decisions.

Questions or corrections? Contact us — we correct errors promptly.