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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.
NSE:CHOLAFIN'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.45 Med: 1.11 Max: 1.47
Current: 1.24
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Cholamandalam Investment and Finance Co was 1.47. The lowest was 0.45. And the median was 1.11.
NSE:CHOLAFIN's Price-to-Peter-Lynch-Fair-Value is ranked worse than 71.51% of 179
companies
in the Credit Services industry
Industry Median: 0.74
vs NSE:CHOLAFIN: 1.24
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) 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 Book Value per share over the past 5 years, which is 25 instead of 15 in this case.
Cholamandalam Investment and Finance Co'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
=
1917.60
/
1,547.35
=
1.24
* 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.
Cholamandalam Investment and Finance Co Peter Lynch Fair Value Related Terms
Cholamandalam Investment and Finance Co Peter Lynch Fair Value Historical Data
* 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.
Cholamandalam Investment and Finance Co Peter Lynch Fair Value Chart
Cholamandalam Investment and Finance Co Annual Data
NSE:CHOLAFIN vs V, MA, AXP: Peter Lynch Fair Value Comparison
For the Credit Services subindustry, Cholamandalam Investment and Finance Co'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.
Cholamandalam Investment and Finance Co Price-to-Peter-Lynch-Fair-Value vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Investment and Finance Co's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Cholamandalam Investment and Finance Co's Price-to-Peter-Lynch-Fair-Value falls into.
Cholamandalam Investment and Finance Co's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was ₹61.89.
* Note that for companies that do not have enough quarterly data to calculate the 5-Year TTM EBITDA Growth Rate, we use the annual data for the calculation.
* 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 Book Value Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data is the latest quarter data. 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.
What does a Peter Lynch Fair Value of ₹1,547.35 mean?
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) has a Peter Lynch Fair Value of ₹1,547.35 as of Aug. 13, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Cholamandalam Investment and Finance Co and its competitors. This is 139301% above median its historical median of 1.11. Over the past decade, Cholamandalam Investment and Finance Co's Peter Lynch Fair Value has ranged from 0.45 to 1.47. According to the industry distribution chart, Cholamandalam Investment and Finance Co ranks #128 out of 179 companies in the Credit Services industry, placing it in the top 71.5%.
Is Cholamandalam Investment and Finance Co's Peter Lynch Fair Value too high?
Cholamandalam Investment and Finance Co's current Peter Lynch Fair Value of ₹1,547.35 is 139301% above median its 10-year median of 1.11. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 1.47. Based on the distribution chart, Cholamandalam Investment and Finance Co ranks #128 out of 179 companies in the Credit Services industry, which is below the industry midpoint. Overall, Cholamandalam Investment and Finance Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Investment and Finance Co's Peter Lynch Fair Value compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Investment and Finance Co ranks #128 out of 179 companies for Peter Lynch Fair Value. This places Cholamandalam Investment and Finance Co in the lower half of its industry. The industry median Peter Lynch Fair Value is 0.74. Historically, Cholamandalam Investment and Finance Co's own Peter Lynch Fair Value has ranged from 0.45 to 1.47 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Peter Lynch Fair Value for a Credit Services company?
The median Peter Lynch Fair Value among Credit Services companies is 0.74, based on 179 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Cholamandalam Investment and Finance Co and its competitors. For the Credit Services industry, the median Peter Lynch Fair Value is 0.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Investment and Finance Co's current Peter Lynch Fair Value is ₹1,547.35, which is 139301% above median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cholamandalam Investment and Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,146.47, compared to a current price of ₹1,917.60 — trading 10.7% below its estimated fair value. The current Peter Lynch Fair Value is ₹1,547.35, which is 139301% above median its 10-year median of 1.11. Cholamandalam Investment and Finance Co's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Cholamandalam Investment and Finance Co (NSE:CHOLAFIN), the current Peter Lynch Fair Value is ₹1,547.35 as of Aug. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co stock appears to be undervalued.
The current stock price of ₹1,917.60 is trading 10.7% below its estimated GF Value™ of ₹2,146.47.
GuruFocus considers Cholamandalam Investment and Finance Co to be Modestly Undervalued.
Key valuation signals for NSE:CHOLAFIN:
Peter Lynch Fair Value: ₹1,547.35 (139301% above median its 10-year median of 1.11)
GF Value™: ₹2,146.47 vs. price of ₹1,917.60 (10.7% below fair value)
No single metric tells the full story. See the NSE:CHOLAFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cholamandalam Investment and Finance Co Ltd serves as the financial services arm of the Murugappa Group. Its subsidiaries include Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). The company's operating segments include; Vehicle finance loans its key revenue generating segment, which provides loans for the purchase of vehicles, tractors, and construction equipment; the Home Loans segment includes loans given for the acquisition of residential property; Loan against property includes loans to the customer against immovable property; and Other loans represents loans against shares and SME loans. The company operates solely in India.
76GF Score
Get the complete analysis for NSE:CHOLAFIN
Peter Lynch Fair Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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