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Red Hat Inc (NYSE:RHT)
PEG
3.96 (As of Today)

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. As of today, Red Hat Inc's P/E (NRI) Ratio is 65.30. Red Hat Inc's 5-year average EBITDA growth rate is 16.50%. Therefore, Red Hat Inc's PEG for today is 3.96.

RHT' s 10-Year PEG Range
Min: 0.36   Max: 7.22
Current: 3.96

0.36
7.22

During the past 13 years, Red Hat Inc's highest PEG was 7.22. The lowest was 0.36. And the median was 3.96.

RHT's PEGis ranked higher than
85% of the 2264 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. RHT: 3.96 )

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.

Red Hat Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=65.30/16.50
=3.96

* 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.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
peg 0.000.000.000.000.783.225.704.724.453.81

Red Hat Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
peg 4.775.284.684.453.993.883.093.813.313.92
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