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Softcat (LSE:SCT) Peter Lynch Fair Value : £8.37 (As of Dec. 12, 2024)


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What is Softcat Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Softcat's PEG is 1. Softcat's 5-Year TTM EBITDA Growth Rate is 14.09. Softcat's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2024 was £0.59. Therefore, the Peter Lynch Fair Value for today is £8.37.

As of today (2024-12-12), Softcat's share price is £15.38. Softcat's Peter Lynch fair value is £8.37. Therefore, Softcat's Price to Peter Lynch Fair Value Ratio for today is 1.84.


The historical rank and industry rank for Softcat's Peter Lynch Fair Value or its related term are showing as below:

LSE:SCT' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.18   Med: 1.64   Max: 1.94
Current: 1.84


During the past 12 years, the highest Price to Peter Lynch Fair Value Ratio of Softcat was 1.94. The lowest was 1.18. And the median was 1.64.


LSE:SCT's Price-to-Peter-Lynch-Fair-Value is ranked worse than
63.81% of 699 companies
in the Hardware industry
Industry Median: 1.35 vs LSE:SCT: 1.84

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Softcat Peter Lynch Fair Value Historical Data

The historical data trend for Softcat's Peter Lynch Fair Value 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.

* Premium members only.

Softcat Peter Lynch Fair Value Chart

Softcat Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.69 10.96 11.83 9.39 8.37

Softcat Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
Peter Lynch Fair Value Get a 7-Day Free Trial 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 11.83 - 9.39 - 8.37

Competitive Comparison of Softcat's Peter Lynch Fair Value

For the Electronics & Computer Distribution subindustry, Softcat's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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.


Softcat's Price-to-Peter-Lynch-Fair-Value Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Softcat's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Softcat's Price-to-Peter-Lynch-Fair-Value falls into.



Softcat Peter Lynch Fair Value Calculation

Softcat's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 14.09 *0.594
=8.37

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Softcat's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2024 was £0.59.


* 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.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Softcat  (LSE:SCT) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 14.09 instead of 15 in this case.

Softcat's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=15.38/8.37
=1.84

* 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.


Softcat Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Softcat's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Softcat Business Description

Industry
Traded in Other Exchanges
Address
Fieldhouse Lane, Solar House, Marlow, Buckinghamshire, GBR, SL7 1LW
Softcat PLC is a information technology infrastructure and service provider. It offers software licensing, workplace technology, networking and security, and cloud and data center solutions to the corporates, public sector organizations and small to medium-sized business segment, of which small to medium-sized business segment is the business provider to the company. The entity earns revenue from offering products like software, hardware, and services, as well as the sale of the company's own services, of which majority of the revenue is derived from offering software products.