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Varian Medical Systems Inc (NYSE:VAR)
PEG
2.10 (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, Varian Medical Systems Inc's P/E (NRI) Ratio is 21.60. Varian Medical Systems Inc's 5-year average EBITDA growth rate is 10.30%. Therefore, Varian Medical Systems Inc's PEG for today is 2.10.

VAR' s 10-Year PEG Range
Min: 0.77   Max: 2.25
Current: 2.1

0.77
2.25

During the past 13 years, Varian Medical Systems Inc's highest PEG was 2.25. The lowest was 0.77. And the median was 1.26.

VAR's PEGis ranked higher than
88% of the 320 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 9999.00 vs. VAR: 2.10 )

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.

Varian Medical Systems Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=21.60/10.30
=2.10

* 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.

Varian Medical Systems Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
peg 1.431.041.191.331.691.091.250.941.181.67

Varian Medical Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
peg 1.311.191.181.421.501.441.671.812.202.44
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