* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Discover Financial Services's PEG Ratio or its related term are showing as below:
WBO:DFS'
s PEG Ratio Range Over the Past 10 Years
Min: 0.33 Med: 1.05 Max: 5.83
Current: 1.18
During the past 13 years, Discover Financial Services's highest PEG Ratio was 5.83. The lowest was 0.33. And the median was 1.05.
WBO:DFS's PEG Ratio is ranked worse than 51.9% of 210
companies
in the Credit Services industry
Industry Median: 1.085
vs WBO:DFS: 1.18
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Discover Financial Services PEG Ratio Historical Data
* 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.
Competitive Comparison of Discover Financial Services's PEG Ratio
For the Credit Services subindustry, Discover Financial Services's PEG Ratio, along with its competitors' market caps and PEG Ratio 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.
Discover Financial Services's PEG Ratio Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Discover Financial Services's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Discover Financial Services's PEG Ratio falls into.
Discover Financial Services PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year Book Value growth rate.
* 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.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Discover Financial Services (WBO:DFS) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Discover Financial Services PEG Ratio Related Terms
Thank you for viewing the detailed overview of Discover Financial Services's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
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