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Gouverneur Bancorp Inc (OTCPK:GOVB)
Peter Lynch Fair Value
\$3.17 (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, Gouverneur Bancorp Inc's PEG is 1. Gouverneur Bancorp Inc's 5-Year EBITDA Growth Rate is 7.54. Gouverneur Bancorp Inc's Earnings Per Share without Non-Recurring Items (NRI) for the trailing twelve months (TTM) ended in Jun. 2008 was \$0.42. Therefore, the Peter Lynch Fair Value for today is \$3.17.

As of today, Gouverneur Bancorp Inc's share price is \$17.00. Gouverneur Bancorp Inc's Peter Lynch fair value is \$3.17. Therefore, Gouverneur Bancorp Inc's Price to Peter Lynch Fair Value Ratio for today is 5.37.

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

Definition

Gouverneur Bancorp 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 * 7.54 * 0.42 = 3.17

Gouverneur Bancorp Inc's Earnings Per Share (NRI) for the trailing twelve months (TTM) ended in Jun. 2008 was 0.12 (Sep. 2007 ) + 0.1 (Dec. 2007 ) + 0.1 (Mar. 2008 ) + 0.1 (Jun. 2008 ) = \$0.42.

* 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 7.54 instead of 15 in this case.

Gouverneur Bancorp 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 = 17.00 / 3.17 = 5.37

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

Related Terms

Historical Data

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

Gouverneur Bancorp Inc Annual Data

 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 lynchvalue N/A N/A N/A N/A N/A N/A N/A N/A 4.43 4.52

Gouverneur Bancorp Inc Quarterly Data

 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 lynchvalue N/A N/A 4.43 N/A N/A N/A 4.52 N/A N/A N/A
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