PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Legg Mason's PE Ratio without NRI is 17.79. Legg Mason's 5-Year EBITDA growth rate is 16.70%. Therefore, Legg Mason's PEG Ratio for today is 1.07.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Legg Mason's PEG Ratio or its related term are showing as below:
LM'
s PEG Ratio Range Over the Past 10 Years
Min: 0.77 Med: 1.21 Max: 2.15
Current: 0.99
During the past 13 years, Legg Mason's highest PEG Ratio was 2.15. The lowest was 0.77. And the median was 1.21.
LM's PEG Ratio is not ranked
in the Asset Management industry.
Industry Median: 1.85
vs LM: 0.99
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Legg Mason PEG Ratio Historical Data
The historical data trend for Legg Mason's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Legg Mason's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Legg Mason's PEG Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Legg Mason's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Legg Mason's PEG Ratio falls into.
Legg Mason PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Legg Mason (NYSE:LM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio 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.
Legg Mason PEG Ratio Related Terms
Thank you for viewing the detailed overview of Legg Mason's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.
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