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, Graco's PE Ratio without NRI is 29.30. Graco's 5-Year EBITDA growth rate is 9.20%. Therefore, Graco's PEG Ratio for today is 3.18.
* 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 Graco's PEG Ratio or its related term are showing as below:
GGG'
s PEG Ratio Range Over the Past 10 Years
Min: 0.84 Med: 2.38 Max: 145.56
Current: 3.18
During the past 13 years, Graco's highest PEG Ratio was 145.56. The lowest was 0.84. And the median was 2.38.
GGG's PEG Ratio is ranked worse than 71.04% of 1274
companies
in the Industrial Products industry
Industry Median: 1.71
vs GGG: 3.18
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Graco PEG Ratio Historical Data
The historical data trend for Graco'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 Specialty Industrial Machinery subindustry, Graco'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.
Graco's PEG Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Graco's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Graco's PEG Ratio falls into.
Graco 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.
* 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.
Graco (NYSE:GGG) 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.
Graco PEG Ratio Related Terms
Thank you for viewing the detailed overview of Graco's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.1 billion in sales and $573 million in operating income in 2022.
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