PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Northrop Grumman's PE Ratio without NRI is 34.97. Northrop Grumman's 5-Year EBITDA growth rate is 7.20%. Therefore, Northrop Grumman's PEG Ratio for today is 4.86.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA 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 Northrop Grumman's PEG Ratio or its related term are showing as below:
NOC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.17 Med: 1.2 Max: 4.9
Current: 4.86
During the past 13 years, Northrop Grumman's highest PEG Ratio was 4.90. The lowest was 0.17. And the median was 1.20.
NOC's PEG Ratio is ranked worse than 69.39% of 98
companies
in the Aerospace & Defense industry
Industry Median: 2.59
vs NOC: 4.86
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Northrop Grumman PEG Ratio Historical Data
The historical data trend for Northrop Grumman's PEG Ratio 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.
For the Aerospace & Defense subindustry, Northrop Grumman'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.
Northrop Grumman PEG Ratio Distribution
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's PEG Ratio falls into.
Northrop Grumman 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 EBITDA growth rate.
Northrop Grumman's PEG 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA 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.
Northrop Grumman (NYSE:NOC) 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.
Northrop Grumman PEG Ratio Related Terms
Thank you for viewing the detailed overview of Northrop Grumman's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Northrop Grumman (Northrop Grumman) Business Description
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber. Defense systems makes artillery and missile ammunition and guidance systems, missile defense systems, and conducts maintenance and upgrades on numerous military aircraft. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.
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