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Morgan Stanley (MEX:MS) Peter Lynch Fair Value

: MXN998.77 (As of Today)
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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, Morgan Stanley's PEG is 1. Morgan Stanley's 5-Year TTM Book Value Growth Rate is 8.33. Morgan Stanley's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2023 was MXN119.90. Therefore, the Peter Lynch Fair Value for today is MXN998.77.

As of today (2023-05-30), Morgan Stanley's share price is MXN1488.03. Morgan Stanley's Peter Lynch fair value is MXN998.77. Therefore, Morgan Stanley's Price to Peter Lynch Fair Value Ratio for today is 1.49.


The historical rank and industry rank for Morgan Stanley's Peter Lynch Fair Value or its related term are showing as below:

MEX:MS' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.46   Med: 0.92   Max: 4.45
Current: 1.89


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Morgan Stanley was 4.45. The lowest was 0.46. And the median was 0.92.


MEX:MS's Price-to-Peter-Lynch-Fair-Value is ranked worse than
67.73% of 220 companies
in the Capital Markets industry
Industry Median: 1.04 vs MEX:MS: 1.89

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


Morgan Stanley Peter Lynch Fair Value Historical Data

The historical data trend for Morgan Stanley'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.

* Premium members only.

Morgan Stanley Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 470.65 616.42 1,015.13 1,558.52 965.31

Morgan Stanley Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 1,423.39 1,313.63 1,193.11 965.31 782.40

Competitive Comparison

For the Capital Markets subindustry, Morgan Stanley's Peter Lynch Fair Value, along with its competitors' market caps and 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.

   

Morgan Stanley Peter Lynch Fair Value Distribution

For the Capital Markets industry and Financial Services sector, Morgan Stanley's Peter Lynch Fair Value distribution charts can be found below:

* The bar in red indicates where Morgan Stanley's Peter Lynch Fair Value falls in comparison to its industry or sector. The grey bar indicates the Peter Lynch Fair Value's extreme value range as defined by GuruFocus.



Morgan Stanley Peter Lynch Fair Value Calculation

Morgan Stanley's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM Book Value Growth Rate***EPS without NRI (TTM)
=1* 8.33 *119.9
=998.77

Morgan Stanley's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was MXN119.90.

* Note that for companies that do not have enough quarterly data to calculate the 5-Year TTM EBITDA Growth Rate, we use the annual data for the calculation.


* 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 Book Value Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data is the latest quarter data. 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.


Morgan Stanley  (MEX:MS) 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 Book Value per share over the past 5 years, which is 8.33 instead of 15 in this case.

Morgan Stanley'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
=1488.03/998.77
=1.49

* 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.


Morgan Stanley Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Morgan Stanley's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Morgan Stanley (MEX:MS) Business Description

Morgan Stanley logo
Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had about $5 trillion of client assets as well as over 70,000 employees at the end of 2021. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.

Morgan Stanley (MEX:MS) Headlines