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GuruFocus has detected 3 Warning Signs with Genuine Parts Co $GPC.
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Genuine Parts Co (NYSE:GPC)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
3.27 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Genuine Parts Co's P/E (NRI) Ratio is 17.64. Genuine Parts Co's 5-year average EBITDA growth rate is 5.40%. Therefore, Genuine Parts Co's PEG for today is 3.27.

GPC' s PEG Ratio Range Over the Past 10 Years
Min: 0.93   Max: 10.78
Current: 3.31

0.93
10.78

During the past 13 years, Genuine Parts Co's highest PEG was 10.78. The lowest was 0.93. And the median was 2.58.

GPC's PEG Ratio is ranked lower than
68% of the 292 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.04 vs. GPC: 3.31 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Genuine Parts Co's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=17.6436285097/5.40
=3.27

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


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG 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.


Related Terms

P/E (NRI) Ratio, 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.

Genuine Parts Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
peg 1.831.262.819.048.612.711.741.922.053.71

Genuine Parts Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
peg 1.921.761.821.822.052.623.003.353.714.22
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