USD 30.51 as of today(2019-11-12). ACGL Peter Lynch Fair Value explanation, calculation, historical data and more" />ACGL Peter Lynch Fair Value | Arch Capital Group - GuruFocus.com
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Arch Capital Group Peter Lynch Fair Value

: USD 30.51 (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. 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, Arch Capital Group's PEG is 1. Arch Capital Group's 5-Year EBITDA Growth Rate is 10.07. Arch Capital Group's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2019 was USD 3.03. Therefore, the Peter Lynch Fair Value for today is USD 30.51.

As of today (2019-11-12), Arch Capital Group's share price is USD 40.79. Arch Capital Group's Peter Lynch fair value is USD 30.51. Therefore, Arch Capital Group's Price to Peter Lynch Fair Value Ratio for today is 1.34.


NAS:ACGL' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.04   Max: 4.21
Current: 0.97

0.04
4.21

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Arch Capital Group was 4.21. The lowest was 0.04. And the median was 0.66.


NAS:ACGL's Price-to-Peter-Lynch-Fair-Value is ranked higher than
59% of the 83 Companies
in the Insurance industry.

( Industry Median: 1.19 vs. NAS:ACGL: 0.97 )

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


Arch Capital Group Peter Lynch Fair Value 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.

Arch Capital Group Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 13.32 14.50 11.21 11.11

Arch Capital Group Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 14.15 11.11 20.38 30.51 42.10

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.


Arch Capital Group Peter Lynch Fair Value Distribution

* The bar in red indicates where Arch Capital Group's Peter Lynch Fair Value falls into.



Arch Capital Group Peter Lynch Fair Value Calculation

Arch Capital Group'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* 10.07 *3.03
=30.51

Arch Capital Group's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2019 was (Dec. 2018 ) + (Mar. 2019 ) + (Jun. 2019 ) + (Sep. 2019 ) = USD 3.03.


* 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.


Arch Capital Group  (NAS:ACGL) 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. 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 10.07 instead of 15 in this case.

Arch Capital Group'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
=40.79/30.51
=1.34

* 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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