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Red Hat Inc  (NYSE:RHT) PEG Ratio: 5.65 (As of Today)
PE(NRI) Ratio / EBITDA 5-Y Growth

PEG is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Red Hat Inc's PE Ratio without NRI is 72.93. Red Hat Inc's 5-year average EBITDA growth rate is 12.90%. Therefore, Red Hat Inc's PEG for today is 5.65.


NYSE:RHT' s PEG Ratio Range Over the Past 10 Years
Min: 0.34   Max: 7.91
Current: 5.65

0.34
7.91

During the past 13 years, Red Hat Inc's highest PEG was 7.91. The lowest was 0.34. And the median was 4.41.


NYSE:RHT's PEG Ratio is ranked lower than
77% of the 600 Companies
in the Global industry.

( Industry Median: 1.99 vs. NYSE:RHT: 5.65 )

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


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.

Red Hat Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.34 3.39 4.04 4.21 4.60

Red Hat Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
PEG Ratio 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 4.72 4.74 4.60 4.63 4.58

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.


Calculation

PEG is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Red Hat Inc's PEG for today is calculated as

PEG=PE Ratio without NRI/EBITDA Growth Rate (5-year average)
=72.9341317365/12.90
=5.65

* 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


Headlines

From the Internet

RHT
New FANGs for Halloween: Best of Cramer

- theStreet 2017-10-22 16:05:00

RHT
Software M&A Poised for Rebound: MoffettNathanson

- theStreet 2017-10-22 06:01:00

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