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Waters Corp (FRA:WAZ)
Peter Lynch Fair Value
€60.97 (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, Waters Corp's PEG is 1. Waters Corp's 5-Year EBITDA Growth Rate is 11.14. Waters Corp's Earnings Per Share without Non-Recurring Items (NRI) for the trailing twelve months (TTM) ended in Sep. 2016 was €5.47. Therefore, the Peter Lynch Fair Value for today is €60.97.

As of today, Waters Corp's share price is €126.97. Waters Corp's Peter Lynch fair value is €60.97. Therefore, Waters Corp's Price to Peter Lynch Fair Value Ratio for today is 2.08.

FRA:WAZ' s Price to Peter Lynch Fair Value Range Over the Past 10 Years
Min: 0.65   Max: 5.81
Current: 3.39

0.65
5.81

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Waters Corp was 5.81. The lowest was 0.65. And the median was 1.63.

FRA:WAZ's Price to Peter Lynch Fair Value is ranked lower than
78% of the 37 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.63 vs. FRA:WAZ: 3.39 )

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


Definition

Waters Corp'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*11.14*5.47323101238
=60.97

Waters Corp's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in Sep. 2016 was 1.6799779675 (Dec. 2015 ) + 1.03268678161 (Mar. 2016 ) + 1.39729441082 (Jun. 2016 ) + 1.36327185245 (Sep. 2016 ) = €5.47.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 11.14 instead of 15 in this case.

Waters Corp'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
=126.97/60.97
=2.08

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Waters Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
lynchvalue 36.8133.8438.5332.2237.9139.5638.3537.2734.9434.19

Waters Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
lynchvalue 32.5535.0334.9439.2636.6034.5734.1931.0531.9934.37
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