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American Pacific Corporation (NAS:APFC)
Peter Lynch Fair Value
\$52.25 (As of Today)

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years. If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25. If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, American Pacific Corporation's PEG is 1. American Pacific Corporation's 5-Year EBITDA Growth Rate is 18.41. American Pacific Corporation's Earnings Per Share without Non-Recurring Items (NRI) for the trailing twelve months (TTM) ended in Sep. 2013 was \$2.84. Therefore, the Peter Lynch Fair Value for today is \$52.25.

As of today, American Pacific Corporation's share price is \$46.47. American Pacific Corporation's Peter Lynch fair value is \$52.25. Therefore, American Pacific Corporation's Price to Peter Lynch Fair Value Ratio for today is 0.89.

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.

Definition

American Pacific Corporation's Peter Lynch Fair Value for today is calculated as

 Peter Lynch Fair Value = PEG * 5-Year EBITDA Growth Rate * Earnings Per Share (NRI) (TTM) = 1 * 18.41 * 2.838 = 52.25

American Pacific Corporation's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in Sep. 2013 was 0.15 (Dec. 2012 ) + 0.34 (Mar. 2013 ) + 1.03 (Jun. 2013 ) + 1.318 (Sep. 2013 ) = \$2.84.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate. EBITDA growth is subject to less manipulations than net earnings per share. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.

Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA over the past 5 years, which is 18.41 instead of 15 in this case.

American Pacific Corporation's Price to Peter Lynch Fair Value Ratio for today is calculated as

 Price to Peter Lynch Fair Value = Share Price / Peter Lynch Fair Value = 46.47 / 52.25 = 0.89

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

American Pacific Corporation Annual Data

 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 lynchvalue N/A N/A -5.75 17.00 30.25 -20.25 -4.88 N/A N/A 46.54

American Pacific Corporation Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 lynchvalue N/A N/A N/A N/A N/A N/A N/A N/A 37.23 46.54
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