Mentor Graphics (Mentor Graphics) Peter Lynch Fair Value : $8.43 (As of May. 06, 2024)

Mentor Graphics Peter Lynch Fair Value Chart

Mentor Graphics Annual Data
	Trend	Jan08	Jan09	Jan10	Jan11	Jan12	Jan13	Jan14	Jan15	Jan16	Jan17
Peter Lynch Fair Value		Get a 7-Day Free Trial					30.38	33.50	31.50	9.29	8.43

Mentor Graphics Quarterly Data
	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17
Peter Lynch Fair Value	Get a 7-Day Free Trial															9.29	5.84	3.27	-	8.43

Competitive Comparison of Mentor Graphics's Peter Lynch Fair Value

For the Software - Application subindustry, Mentor Graphics'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.

Mentor Graphics's Price-to-Peter-Lynch-Fair-Value Distribution in the Software Industry

For the Software industry and Technology sector, Mentor Graphics's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Mentor Graphics's Price-to-Peter-Lynch-Fair-Value falls into.

Mentor Graphics Peter Lynch Fair Value Calculation

Mentor Graphics's Peter Lynch Fair Value for today is calculated as

Mentor Graphics's EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.36.

* 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.

Mentor Graphics  (NAS:MENT) 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 6.2 instead of 15 in this case.

Mentor Graphics's Price to Peter Lynch Fair Value Ratio for today is calculated as

* 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.

Mentor Graphics Peter Lynch Fair Value Related Terms

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Mentor Graphics (Mentor Graphics) Business Description