Title: Can "Golden Goose" Stock Keep Laying Golden Eggs? How to Project Future EPS Grow... Tagline: Can "Golden Goose" Stock Keep Laying Golden Eggs? How to Project Future EPS Growth and Fund Three College Educations Problem: Sarah and Tom, a dual-income couple in their early 40s, are sitting pretty financially, earning a combined $450,000 per year. They meticulously planned and invested early, and their portfolio has a single, star-performing stock they affectionately call their "Golden Goose." This stock, currently a significant portion of their investments, has consistently delivered high EPS growth over the past 5 years, significantly contributing to their retirement and college savings for their three children. However, with college tuition looming, Sarah and Tom are concerned. Can this company sustain its high growth rate? Are they overly reliant on a single stock? They need to assess the risk of over-concentration and the feasibility of relying on this stock to fund a substantial portion of their children's college expenses. They want to determine a realistic projected EPS growth to understand if their reliance is justified. Solution: Using our Earnings Per Share Calculator, Sarah and Tom input the company's historical net income and outstanding shares. By analyzing the trend, they can forecast a more conservative, yet realistic, EPS growth rate for the next 5-10 years. This allows them to project the potential future value of their holdings in this specific stock. Further, by using the Debt-to-Asset Ratio Calculator, they can analyze the financial health of the company and understand if the debt levels are sustainable. They can then compare the new EPS projection and debt level with other stock options. Finally, using the Tax Equivalent Yield calculator, they can determine whether alternative, lower-risk investments might provide a comparable after-tax return, potentially mitigating their risk. ROI: By stress-testing their "Golden Goose" stock, Sarah and Tom uncover a potential overestimation of future EPS growth. They discover that relying solely on this stock for college funds could leave them $75,000 short per child if the EPS growth slows. Diversifying their portfolio, informed by a realistic EPS projection and risk assessment, allows them to allocate a portion of their assets to other investments with more stability. They calculate a tax equivalent yield on municipal bonds that provides a comparable return with less risk, saving them a potential $225,000 shortfall in college funding. Description: Uncover the hidden profitability potential of your "Golden Goose" stock and ensure it continues to fund your family's future goals. Our Earnings Per Share Calculator helps you analyze past performance and estimate future EPS, so you can make informed decisions about your portfolio. Category: Lead Gen