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Dis-Chem Pharmacies (JSE:DCP) Peter Lynch Fair Value : R16.03 (As of May. 17, 2024)


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What is Dis-Chem Pharmacies 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, Dis-Chem Pharmacies's PEG is 1. Dis-Chem Pharmacies's 5-Year TTM EBITDA Growth Rate is 13.77. Dis-Chem Pharmacies's EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2023 was R1.16. Therefore, the Peter Lynch Fair Value for today is R16.03.

As of today (2024-05-17), Dis-Chem Pharmacies's share price is R33.66. Dis-Chem Pharmacies's Peter Lynch fair value is R16.03. Therefore, Dis-Chem Pharmacies's Price to Peter Lynch Fair Value Ratio for today is 2.10.


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

JSE:DCP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.51   Med: 1.7   Max: 2.77
Current: 2.1


During the past 10 years, the highest Price to Peter Lynch Fair Value Ratio of Dis-Chem Pharmacies was 2.77. The lowest was 1.51. And the median was 1.70.


JSE:DCP's Price-to-Peter-Lynch-Fair-Value is ranked worse than
68.85% of 183 companies
in the Healthcare Providers & Services industry
Industry Median: 1.34 vs JSE:DCP: 2.10

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


Dis-Chem Pharmacies Peter Lynch Fair Value Historical Data

The historical data trend for Dis-Chem Pharmacies'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.

Dis-Chem Pharmacies Peter Lynch Fair Value Chart

Dis-Chem Pharmacies Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.14 12.70 10.58 12.49 16.03

Dis-Chem Pharmacies Semi-Annual Data
Feb14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 - 12.49 - 16.03 -

Competitive Comparison of Dis-Chem Pharmacies's Peter Lynch Fair Value

For the Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.


Dis-Chem Pharmacies's Price-to-Peter-Lynch-Fair-Value Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

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



Dis-Chem Pharmacies Peter Lynch Fair Value Calculation

Dis-Chem Pharmacies'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* 13.77 *1.164
=16.03

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Dis-Chem Pharmacies's EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2023 was R1.16.


* 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.


Dis-Chem Pharmacies  (JSE:DCP) 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 13.77 instead of 15 in this case.

Dis-Chem Pharmacies'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
=33.66/16.03
=2.10

* 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.


Dis-Chem Pharmacies Peter Lynch Fair Value Related Terms

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


Dis-Chem Pharmacies (JSE:DCP) Business Description

Traded in Other Exchanges
N/A
Address
23 Stag Road, Glen Austin, Midrand, Johannesburg, GT, ZAF, 1685
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceutical and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries its business operations principally in South Africa.