USD 63.00 as of today(2020-07-09). In depth view into Time Warner Peter Lynch Fair Value explanation, calculation, historical data and more" />TWX Peter Lynch Fair Value | Time Warner - GuruFocus.com
Switch to:

Time Warner Peter Lynch Fair Value

: USD 63.00 (As of Today)
View and export this data going back to 1992. Start your Free Trial

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, Time Warner's PEG is 1. Time Warner's 5-Year EBITDA Growth Rate is 9.13. Time Warner's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2018 was USD 6.90. Therefore, the Peter Lynch Fair Value for today is USD 63.00.

As of today (2020-07-09), Time Warner's share price is USD 98.77. Time Warner's Peter Lynch fair value is USD 63.00. Therefore, Time Warner's Price to Peter Lynch Fair Value Ratio for today is 1.57.




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


Time Warner 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.

Time Warner Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 88.75 61.12 43.78 33.39 63.25

Time Warner Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 33.74 36.91 41.40 63.25 63.00

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.


Time Warner Peter Lynch Fair Value Distribution

* The bar in red indicates where Time Warner's Peter Lynch Fair Value falls into.



Time Warner Peter Lynch Fair Value Calculation

Time Warner'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* 9.13 *6.9
=63.00

Time Warner's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2018 was (Jun. 2017 ) + (Sep. 2017 ) + (Dec. 2017 ) + (Mar. 2018 ) = USD 6.90.


* 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.


Time Warner  (NYSE:TWX) 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 9.13 instead of 15 in this case.

Time Warner'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
=98.77/63.00
=1.57

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Time Warner Peter Lynch Fair Value Related Terms


Time Warner Peter Lynch Fair Value Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)