What is Live Oak Bancshares 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, Live Oak Bancshares's PEG is 1. Live Oak Bancshares's 5-Year TTM Book Value Growth Rate is 11.11.
Live Oak Bancshares's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $1.64. Therefore, the Peter Lynch Fair Value for today is $18.22.
The historical rank and industry rank for Live Oak Bancshares's Peter Lynch Fair Value or its related term are showing as below:
LOB'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.6 Med: 1.36 Max: 3.63
Current: 1.38
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Live Oak Bancshares was 3.63. The lowest was 0.60. And the median was 1.36.
LOB's Price-to-Peter-Lynch-Fair-Value is ranked worse than 72.91% of 694
companies
in the Banks industry
Industry Median: 0.87
vs LOB: 1.38
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Live Oak Bancshares Peter Lynch Fair Value Historical Data
The historical data trend for Live Oak Bancshares'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.
Competitive Comparison of Live Oak Bancshares's Peter Lynch Fair Value
For the Banks - Regional subindustry, Live Oak Bancshares'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.
Live Oak Bancshares's Price-to-Peter-Lynch-Fair-Value Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Live Oak Bancshares's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Live Oak Bancshares's Price-to-Peter-Lynch-Fair-Value falls into.
Live Oak Bancshares Peter Lynch Fair Value Calculation
Live Oak Bancshares's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was $1.64.
* 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.
Live Oak Bancshares (NYSE:LOB) 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 11.11 instead of 15 in this case.
Live Oak Bancshares'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
=
34.48
/
18.22
=
1.89
* 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.
Live Oak Bancshares Peter Lynch Fair Value Related Terms
Thank you for viewing the detailed overview of Live Oak Bancshares's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Live Oak Bancshares (Live Oak Bancshares) Business Description
Live Oak Bancshares Inc operates as the bank holding company for the Live Oak Banking Company. The company specializes in lending and deposit-related services to small businesses nationwide. The company identifies and extends lending to credit-worthy borrowers both within specific industries, also called verticals, through expertise within those industries, and more broadly to select borrowers outside of those industries. A portion of the loans originated by the Bank are partially guaranteed by the Small Business Administration under the 7(a) Loan Program and the U.S. Department of Agriculture Rural Energy for America Program, Water and Environmental Program, Business and Industry and Community Facilities loan programs.
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