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Walt Disney Co (NYSE:DIS)
Peter Lynch Fair Value
$72.05 (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.

Here, as of today, Walt Disney Co's PEG is 1. Walt Disney Co's 5-Year EBITDA Growth Rate is 17.32. Walt Disney Co's Earnings Per Share without Non-Recurring Items (NRI) for the trailing twelve months (TTM) ended in Jun. 2014 was $4.16. Therefore, the Peter Lynch Fair Value for today is $72.05.

As of today, Walt Disney Co's share price is $90.86. Walt Disney Co's Peter Lynch fair value is $72.05. Therefore, Walt Disney Co's Price to Peter Lynch Fair Value Ratio for today is 1.26.

DIS' s 10-Year Price to Peter Lynch Fair Value Range
Min: 0.54   Max: 36.16
Current: 1.3

0.54
36.16

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Walt Disney Co was 36.16. The lowest was 0.54. And the median was 1.50.

DIS's Price to Peter Lynch Fair Value is ranked higher than
94% of the 496 Companies
in the Global Media - Diversified industry.

( Industry Median: 9999.00 vs. DIS: 1.30 )

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


Definition

Walt Disney Co'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*17.32*4.16
=72.05

Walt Disney Co's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in Jun. 2014 was 0.77 (Sep. 2013 ) + 1.03 (Dec. 2013 ) + 1.08 (Mar. 2014 ) + 1.28 (Jun. 2014 ) = $4.16.

* 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.

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 17.32 instead of 15 in this case.

Walt Disney Co'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
=90.86/72.05
=1.26

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


Related Terms

Earnings Per Share (NRI), peg, Median P/S Value, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number


Historical Data

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

Walt Disney Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
lynchvalue 0.0014.9726.3950.6746.6026.8215.920.0020.9741.81

Walt Disney Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
lynchvalue 0.000.0020.9725.3433.1339.2246.8156.3563.9572.05
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