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Check Point Software Technologies Ltd  (NAS:CHKP) Peter Lynch Fair Value: $41.10 (As of Today)

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years. If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25. If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Check Point Software Technologies Ltd's PEG is 1. Check Point Software Technologies Ltd's 5-Year EBITDA Growth Rate is 8.82. Check Point Software Technologies Ltd's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2017 was $4.66. Therefore, the Peter Lynch Fair Value for today is $41.10.

As of today, Check Point Software Technologies Ltd's share price is $102.15. Check Point Software Technologies Ltd's Peter Lynch fair value is $41.10. Therefore, Check Point Software Technologies Ltd's Price to Peter Lynch Fair Value Ratio for today is 2.49.


NAS:CHKP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.49   Max: 3.85
Current: 2.48

0.49
3.85

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Check Point Software Technologies Ltd was 3.85. The lowest was 0.49. And the median was 1.26.


NAS:CHKP's Price-to-Peter-Lynch-Fair-Value is ranked lower than
77% of the 381 Companies
in the Global industry.

( Industry Median: 1.62 vs. NAS:CHKP: 2.48 )

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Check Point Software Technologies Ltd Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.70 55.30 43.56 37.44 36.58

Check Point Software Technologies Ltd Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.77 36.58 37.24 38.93 41.10

Competitive Comparison
* 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.


Calculation

Check Point Software Technologies Ltd's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year EBITDA Growth Rate*EPS without NRI (TTM)
=1* 8.82 *4.66
=41.10

Check Point Software Technologies Ltd's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2017 was (Dec. 2016 ) + (Mar. 2017 ) + (Jun. 2017 ) + (Sep. 2017 ) = $4.66.


* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate. EBITDA growth is subject to less manipulations than net earnings per share. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. The growth rate we use is the average growth rate for earnings per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA over the past 5 years, which is 8.82 instead of 15 in this case.

Check Point Software Technologies Ltd's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=102.15/41.10
=2.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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