E*TRADE Financial (E*TRADE Financial) Peter Lynch Fair Value : $26.87 (As of Apr. 26, 2024)

E*TRADE Financial Peter Lynch Fair Value Chart

E*TRADE Financial Annual Data
	Trend	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19
Peter Lynch Fair Value		Get a 7-Day Free Trial					-	-	16.08	28.55	26.24

E*TRADE Financial Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Peter Lynch Fair Value	Get a 7-Day Free Trial															28.47	28.70	26.24	23.08	22.88

Competitive Comparison of E*TRADE Financial's Peter Lynch Fair Value

For the Capital Markets subindustry, E*TRADE Financial'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.

E*TRADE Financial's Price-to-Peter-Lynch-Fair-Value Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, E*TRADE Financial's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

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

E*TRADE Financial Peter Lynch Fair Value Calculation

E*TRADE Financial's Peter Lynch Fair Value for today is calculated as

E*TRADE Financial's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was $3.85.

* 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.

E*TRADE Financial  (NAS:ETFC) 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 6.98 instead of 15 in this case.

E*TRADE Financial's Price to Peter Lynch Fair Value Ratio for today is calculated as

* 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.

E*TRADE Financial Peter Lynch Fair Value Related Terms

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E*TRADE Financial (E*TRADE Financial) Business Description