GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Mahindra & Mahindra Financial Services Ltd (NSE:M&MFIN) » Definitions » Peter Lynch Fair Value

Mahindra & Mahindra Financial Services (NSE:M&MFIN) Peter Lynch Fair Value : ₹123.64 (As of May. 19, 2024)


View and export this data going back to 2006. Start your Free Trial

What is Mahindra & Mahindra Financial Services 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, Mahindra & Mahindra Financial Services's PEG is 1. Mahindra & Mahindra Financial Services's 5-Year TTM Book Value Growth Rate is 7.9. Mahindra & Mahindra Financial Services's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was ₹15.65. Therefore, the Peter Lynch Fair Value for today is ₹123.64.

As of today (2024-05-19), Mahindra & Mahindra Financial Services's share price is ₹263.80. Mahindra & Mahindra Financial Services's Peter Lynch fair value is ₹123.64. Therefore, Mahindra & Mahindra Financial Services's Price to Peter Lynch Fair Value Ratio for today is 2.13.


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

NSE:M&MFIN' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.52   Med: 1.53   Max: 2.73
Current: 2.13


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Mahindra & Mahindra Financial Services was 2.73. The lowest was 0.52. And the median was 1.53.


NSE:M&MFIN's Price-to-Peter-Lynch-Fair-Value is ranked worse than
77.55% of 147 companies
in the Credit Services industry
Industry Median: 0.95 vs NSE:M&MFIN: 2.13

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


Mahindra & Mahindra Financial Services Peter Lynch Fair Value Historical Data

The historical data trend for Mahindra & Mahindra Financial Services'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.

Mahindra & Mahindra Financial Services Peter Lynch Fair Value Chart

Mahindra & Mahindra Financial Services Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 174.16 72.82 106.47 147.11 123.64

Mahindra & Mahindra Financial Services Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
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 - 147.11 - - 123.64

Competitive Comparison of Mahindra & Mahindra Financial Services's Peter Lynch Fair Value

For the Credit Services subindustry, Mahindra & Mahindra Financial Services'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.


Mahindra & Mahindra Financial Services's Price-to-Peter-Lynch-Fair-Value Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Mahindra & Mahindra Financial Services's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Mahindra & Mahindra Financial Services's Price-to-Peter-Lynch-Fair-Value falls into.



Mahindra & Mahindra Financial Services Peter Lynch Fair Value Calculation

Mahindra & Mahindra Financial Services's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM Book Value Growth Rate***EPS without NRI (TTM)
=1* 7.9 *15.65
=123.64

Mahindra & Mahindra Financial Services's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was ₹15.65.

* 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.


Mahindra & Mahindra Financial Services  (NSE:M&MFIN) 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 7.9 instead of 15 in this case.

Mahindra & Mahindra Financial Services'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
=263.80/123.64
=2.13

* 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.


Mahindra & Mahindra Financial Services Peter Lynch Fair Value Related Terms

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


Mahindra & Mahindra Financial Services (NSE:M&MFIN) Business Description

Traded in Other Exchanges
Address
Dr. G M. Bhosale Marg, 4th Floor, Mahindra Towers, A Wing, P.K. Kurne Chowk, Worli, Mumbai, MH, IND, 400 018
Mahindra & Mahindra Financial Services Ltd is a subsidiary of the Indian conglomerate Mahinda & Mahindra. The company is a nonbanking financial company that serves the financing needs of a sizable population residing in nonmetropolitan areas of India. The company provides a wide range of retail products and services, including financing vehicles for commercial and personal use, tractors, small to medium enterprise loans, and other financial products. The company also operates in other niche markets. It has introduced mutual fund distributions, fixed deposit products, and personal loans. The company's main source of revenue is interest income from its loans.

Mahindra & Mahindra Financial Services (NSE:M&MFIN) Headlines

No Headlines