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ConAgra Foods Inc (NYSE:CAG)
Peter Lynch Fair Value
N/A (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.

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of ConAgra Foods Inc was 5.56. The lowest was 0.96. And the median was 1.77.

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

Definition

ConAgra Foods 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 * N/A * 1.09 = N/A

ConAgra Foods Inc's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in May. 2016 was 0.38 (Aug. 2015 ) + 0.37 (Nov. 2015 ) + 0.41 (Feb. 2016 ) + -0.07 (May. 2016 ) = \$1.09.

* 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 0 instead of 15 in this case.

ConAgra Foods 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 = 46.20 / N/A = N/A

* 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.

ConAgra Foods Inc Annual Data

 May07 May08 May09 May10 May11 May12 May13 May14 May15 May16 lynchvalue N/A N/A N/A 13.66 26.62 14.98 18.22 N/A N/A N/A

ConAgra Foods Inc Quarterly Data

 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 lynchvalue 8.86 N/A N/A N/A N/A N/A N/A N/A N/A N/A
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