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, Primo Water's PE Ratio without NRI is 25.43. Primo Water's 5-Year EBITDA growth rate is 6.10%. Therefore, Primo Water's PEG Ratio for today is 4.17.
* 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 Primo Water's PEG Ratio or its related term are showing as below:
PRMW'
s PEG Ratio Range Over the Past 10 Years
Min: 1.27 Med: 15.69 Max: 134.31
Current: 4.17
During the past 13 years, Primo Water's highest PEG Ratio was 134.31. The lowest was 1.27. And the median was 15.69.
PRMW's PEG Ratio is ranked worse than 78% of 50
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.73
vs PRMW: 4.17
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Primo Water PEG Ratio Historical Data
The historical data trend for Primo Water'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 Beverages - Non-Alcoholic subindustry, Primo Water'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.
Primo Water's PEG Ratio Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Primo Water's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Primo Water's PEG Ratio falls into.
Primo Water 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.
Primo Water'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.
Primo Water (NYSE:PRMW) 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.
Primo Water PEG Ratio Related Terms
Thank you for viewing the detailed overview of Primo Water's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.
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