Formula
PEG =
P/E Ratio / EBITDA Growth Rate (5-year average)
TSR, Inc. peg Calculation
* All numbers are in millions except for per share dataTSR, Inc. Annual Data
| May03 | May04 | May05 | May06 | May07 | May08 | May09 | May10 | May11 | May12 |
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| peg |
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TSR, Inc. Quarterly Data
| Aug10 | Nov10 | Feb11 | May11 | Aug11 | Nov11 | Feb12 | May12 | Aug12 | Nov12 |
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| peg |
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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 Ratio,
Peter Lynch Fair Value* All numbers are in millions except for per share dataTSR, Inc. Annual Data
| May03 | May04 | May05 | May06 | May07 | May08 | May09 | May10 | May11 | May12 |
|---|
| peg |
|---|
TSR, Inc. Quarterly Data
| Aug10 | Nov10 | Feb11 | May11 | Aug11 | Nov11 | Feb12 | May12 | Aug12 | Nov12 |
|---|
| peg |
|---|