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Microsoft Corp (NAS:MSFT)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
34.47 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Microsoft Corp's P/E (NRI) Ratio is 41.37. Microsoft Corp's 5-year average EBITDA growth rate is 1.20%. Therefore, Microsoft Corp's PEG for today is 34.47.

MSFT' s PEG Range Over the Past 10 Years
Min: 0.32   Max: 499.25
Current: 33.5

0.32
499.25

During the past 13 years, Microsoft Corp's highest PEG was 499.25. The lowest was 0.32. And the median was 1.53.

MSFT's PEG is ranked lower than
97% of the 554 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.88 vs. MSFT: 33.50 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

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

Microsoft Corp's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=41.3650793651/1.20
=34.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


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 (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Microsoft Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
peg 3.491.450.590.620.640.611.382.632.3511.45

Microsoft Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
peg 2.282.422.352.933.623.6611.4523.95495.380.00
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