What Percentage of Lexmark’s Stock Price Can Be Attributed To Growth?

LXK: Lexmark International logo
Lexmark International

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
  1. Lexmark Earnings: Revenue Decline Across Printer Division Continues
  2. Lexmark Pre Earnings: Printer Revenue To Decline, Software Revenue To Report Growth
  3. Lexmark Earnings: Revenue Declines Less Than Expected As Merger And Delisting Seems Eminent
  4. Lexmark Earnings Preview: Decline In Revenue To Continue
  5. Lexmark Earnings: Revenue Declines More Than Expected
  6. 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.


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