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, The Aarons Co's PE Ratio without NRI is 4.42. The Aarons Co's 5-Year EBITDA growth rate is 3.00%. Therefore, The Aarons Co's PEG Ratio for today is 1.47.
* 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 The Aarons Co's PEG Ratio or its related term are showing as below:
AAN'
s PEG Ratio Range Over the Past 10 Years
Min: 1.39 Med: 1.5 Max: 2.27
Current: 1.47
During the past 7 years, The Aarons Co's highest PEG Ratio was 2.27. The lowest was 1.39. And the median was 1.50.
AAN's PEG Ratio is ranked worse than 53.24% of 432
companies
in the Business Services industry
Industry Median: 1.315
vs AAN: 1.47
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
The Aarons Co PEG Ratio Historical Data
The historical data trend for The Aarons Co'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.
Competitive Comparison of The Aarons Co's PEG Ratio
For the Rental & Leasing Services subindustry, The Aarons Co'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.
The Aarons Co's PEG Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, The Aarons Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The Aarons Co's PEG Ratio falls into.
The Aarons Co 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.
The Aarons Co's PEG Ratio for today is calculated as
* 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.
The Aarons Co (NYSE:AAN) 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.
The Aarons Co PEG Ratio Related Terms
Thank you for viewing the detailed overview of The Aarons Co's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Aarons Co (The Aarons Co) Business Description
The Aarons Co Inc is a specialty retailer which has developed a unique lease-to-own model. It serves the customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories at the best deal with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
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