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Convergys (Convergys) Peter Lynch Fair Value : $16.21 (As of May. 11, 2024)


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What is Convergys Peter Lynch Fair Value?

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, Convergys's PEG is 1. Convergys's 5-Year TTM EBITDA Growth Rate is 18.21. Convergys's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2018 was $0.89. Therefore, the Peter Lynch Fair Value for today is $16.21.

As of today (2024-05-11), Convergys's share price is $24.41. Convergys's Peter Lynch fair value is $16.21. Therefore, Convergys's Price to Peter Lynch Fair Value Ratio for today is 1.51.


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



CVG's Price-to-Peter-Lynch-Fair-Value is not ranked *
in the Business Services industry.
Industry Median: 1.05
* Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.

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


Convergys Peter Lynch Fair Value Historical Data

The historical data trend for Convergys'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.

Convergys Peter Lynch Fair Value Chart

Convergys Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 27.25 40.00 24.95 30.75

Convergys Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
Peter Lynch Fair Value Get a 7-Day Free Trial 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 33.25 33.00 30.75 27.70 16.21

Competitive Comparison of Convergys's Peter Lynch Fair Value

For the Specialty Business Services subindustry, Convergys'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.


Convergys's Price-to-Peter-Lynch-Fair-Value Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Convergys's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

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



Convergys Peter Lynch Fair Value Calculation

Convergys's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 18.21 *0.89
=16.21

Convergys's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.89.


* 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.


Convergys  (NYSE:CVG) 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 18.21 instead of 15 in this case.

Convergys'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
=24.41/16.21
=1.51

* 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.


Convergys Peter Lynch Fair Value Related Terms

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


Convergys (Convergys) Business Description

Traded in Other Exchanges
N/A
Address
Convergys is an operator of contact centers offering customer-management services. The services include sales, customer services, technical support, customer retention, collection services, and analytics. Convergys provides its services to a wide range of industries, such as utilities, travel and hospitality, automotive, communications and media, technology, financial services, healthcare, retail, and insurance. The revenue stream is North America, and the company relies on just a few contracts for a large part of its sales.
Executives
Andrea J. Ayers director, officer: President & CEO STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Thomas L Monahan director 2000 PENNSYLVANIA AVE NW, WASHINGTON DC 20006
Joan E Herman director
Jeffrey H Fox director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Ronald L Nelson director
Knowling Robert E Jr director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Cheryl K Beebe director CORN PRODUCTS INTERNATIONAL INC, 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Marjorie Mary Connelly officer: COO 2580 PALMER DR, KESWICK VA 22947
Richard F Wallman director HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
John F Barrett director
Brian James Delaney officer: Chief Operating Officer C/O SERVICESOURCE INTERNATIONAL, INC., 760 MARKET STREET, #400, SAN FRANCISCO CA 94102
Barry Christine Timmins officer: Senior Vice President C/O ENDURANCE INTERNATIONAL GROUP 10 CORPORATE DRIVE BURLINGTON MA 01803
Philip A Odeen director N/A, N/A OH 45202
Earl C Shanks officer: CFO CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Robert A Lento officer: Senior Vice President

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