Bull Call Spreads
[Debit]
Bull Put Spreads
[Credit]
Bear Call Spreads
[Credit]
Bear Put Spreads
[Debit]
Call Butterflies
[Short ATM, Long OTM]
Call Butterflies
[Long ATM, Short OTM]
Put Butterflies
[Short ATM, Long OTM]
Put Butterflies
[Long ATM, Short OTM]
Iron Butterflies
[Short ATM, Long OTM]
Iron Butterflies
[Long ATM, Short OTM]
Iron Condors
[Long Inner, Short Outer]
Iron Condors
[Short Inner, Long Outer]
Straddles
[At-The-Money]
Use this calculator to estimate the number of years it would take the cumulative earnings to equal the current stock price. You can enter a different estimated EPS and estimated annual growth rate to see how the payback period changes.
Starting EPS (default): AA EPS (earnings per share) is low relative to its revenue. Also, the company's revenue has been growing over the last 5 years. We consider these 2 financial metrics to be an indication that the company is in a growth phase. Therefore, the actual earnings are probably low relative to AA's revenue growth. So we estimated the company has potential to convert 3% of revenue to net earnings.
Growth Rate (default): Since AA did not have historical earnings growth, we used the 3 yr average revenue growth rate of 1.0% as the default growth rate.