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27.23 (1y: +65%)
Market Cap 8.64 B P/E(ttm) 9.00
Enterprise Value 10.76 B P/B 2.43
DHI- NYSE (USA)
DR Horton Inc
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
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$27.23
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Definition

PEG is defined as the P/E Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Formula

PEG = P/E Ratio / EBITDA Growth Rate (5-year average)

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

Financial Dictionary

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