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. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, CNH Industrial NV's PEG is 1. CNH Industrial NV's 5-Year TTM EBITDA Growth Rate is 8.52.
CNH Industrial NV's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $1.71. Therefore, the Peter Lynch Fair Value for today is $14.58.
As of today (2024-04-26), CNH Industrial NV's share price is $11.38. CNH Industrial NV's Peter Lynch fair value is $14.58. Therefore, CNH Industrial NV's Price to Peter Lynch Fair Value Ratio for today is 0.78.
The historical rank and industry rank for CNH Industrial NV's Peter Lynch Fair Value or its related term are showing as below:
CNHI'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.77 Med: 1.21 Max: 1.58
Current: 0.78
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of CNH Industrial NV was 1.58. The lowest was 0.77. And the median was 1.21.
CNHI's Price-to-Peter-Lynch-Fair-Value is ranked worse than 55.29% of 85
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.75
vs CNHI: 0.78
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
CNH Industrial NV Peter Lynch Fair Value Historical Data
The historical data trend for CNH Industrial NV's Peter Lynch Fair Value 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 CNH Industrial NV's Peter Lynch Fair Value
For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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.
CNH Industrial NV's Price-to-Peter-Lynch-Fair-Value Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where CNH Industrial NV's Price-to-Peter-Lynch-Fair-Value falls into.
CNH Industrial NV Peter Lynch Fair Value Calculation
CNH Industrial NV's Peter Lynch Fair Value for today is calculated as
CNH Industrial NV's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.71.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
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 for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. 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.
CNH Industrial NV (NYSE:CNHI) Peter Lynch Fair Value 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. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value 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 per share over the past 5 years, which is 8.52 instead of 15 in this case.
CNH Industrial NV'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
=
11.38
/
14.58
=
0.78
* 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.
CNH Industrial NV Peter Lynch Fair Value Related Terms
Thank you for viewing the detailed overview of CNH Industrial NV's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.
CNH Industrial NV (CNH Industrial NV) Business Description
CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations globally. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.
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