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Boise Inc (NYSE:BZ)
Peter Lynch Fair Value
\$1.04 (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, Boise Inc's PEG is 1. Boise Inc's 5-Year EBITDA Growth Rate is 7.21. Boise Inc's Earnings Per Share without Non-Recurring Items (NRI) for the trailing twelve months (TTM) ended in Jun. 2013 was \$0.14. Therefore, the Peter Lynch Fair Value for today is \$1.04.

As of today, Boise Inc's share price is \$12.55. Boise Inc's Peter Lynch fair value is \$1.04. Therefore, Boise Inc's Price to Peter Lynch Fair Value Ratio for today is 12.09.

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

Definition

Boise Inc'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 * 7.21 * 0.144 = 1.04

Boise Inc's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in Jun. 2013 was 0.04 (Sep. 2012 ) + 0.134 (Dec. 2012 ) + -0.01 (Mar. 2013 ) + -0.02 (Jun. 2013 ) = \$0.14.

* 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 7.21 instead of 15 in this case.

Boise Inc'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 = 12.55 / 1.04 = 12.09

* 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.

Boise Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 lynchvalue N/A N/A N/A N/A N/A N/A N/A N/A N/A 13.10

Boise Inc Quarterly Data

 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 lynchvalue N/A N/A N/A N/A N/A N/A 13.55 13.10 2.99 1.43
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