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Novo Nordisk A/S (NYSE:NVO)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
1.30 (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, Novo Nordisk A/S's P/E (NRI) Ratio is 25.15. Novo Nordisk A/S's 5-year average EBITDA growth rate is 19.40%. Therefore, Novo Nordisk A/S's PEG for today is 1.30.

NVO' s PEG Range Over the Past 10 Years
Min: 0.32   Max: 2.72
Current: 1.29

0.32
2.72

During the past 13 years, Novo Nordisk A/S's highest PEG was 2.72. The lowest was 0.32. And the median was 1.40.

NVO's PEG is ranked higher than
71% of the 91 Companies
in the Global Biotechnology industry.

( Industry Median: 2.50 vs. NVO: 1.29 )

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.

Novo Nordisk A/S's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=25.1480496675/19.40
=1.30

* 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.

Novo Nordisk A/S Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
peg 1.992.301.101.141.462.211.311.021.110.00

Novo Nordisk A/S Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
peg 0.991.021.211.181.261.111.371.251.130.00
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