Switch to:
Novo Nordisk A/S (NYSE:NVO)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
1.52 (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 29.88. Novo Nordisk A/S's 5-year average EBITDA growth rate is 19.60%. Therefore, Novo Nordisk A/S's PEG for today is 1.52.

NVO' s 10-Year PEG Range
Min: 0.54   Max: 1.87
Current: 1.57

0.54
1.87

During the past 13 years, Novo Nordisk A/S's highest PEG was 1.87. The lowest was 0.54. And the median was 1.19.

NVO's PEGis ranked higher than
73% of the 77 Companies
in the Global Biotechnology industry.

( Industry Median: 2.26 vs. NVO: 1.57 )

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)
=29.8838339935/19.60
=1.52

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
peg 0.000.000.761.121.021.101.551.040.981.19

Novo Nordisk A/S Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
peg 0.970.880.920.981.201.191.331.191.451.29
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK