Formula
PEG =
P/E Ratio / EBITDA Growth Rate (5-year average)
Cyberonics, Inc. peg Calculation
* All numbers are in millions except for per share dataCyberonics, Inc. Annual Data
| Apr03 | Apr04 | Apr05 | Apr06 | Apr07 | Apr08 | Apr09 | Apr10 | Apr11 | Apr12 |
|---|
| peg |
|---|
Cyberonics, Inc. Quarterly Data
| Oct10 | Jan11 | Apr11 | Jul11 | Oct11 | Jan12 | Apr12 | Jul12 | Oct12 | Jan13 |
|---|
| peg |
|---|
Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Related Terms
P/E Ratio,
Peter Lynch Fair Value* All numbers are in millions except for per share dataCyberonics, Inc. Annual Data
| Apr03 | Apr04 | Apr05 | Apr06 | Apr07 | Apr08 | Apr09 | Apr10 | Apr11 | Apr12 |
|---|
| peg |
|---|
Cyberonics, Inc. Quarterly Data
| Oct10 | Jan11 | Apr11 | Jul11 | Oct11 | Jan12 | Apr12 | Jul12 | Oct12 | Jan13 |
|---|
| peg |
|---|