* 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 Smith & Nephew's PEG Ratio or its related term are showing as below:
During the past 13 years, Smith & Nephew's highest PEG Ratio was 11.39. The lowest was 0.95. And the median was 2.94.
SNN's PEG Ratio is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 1.84 * Ranked among companies with meaningful PEG Ratio only.
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Smith & Nephew PEG Ratio Historical Data
The historical data trend for Smith & Nephew'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.
Competitive Comparison of Smith & Nephew's PEG Ratio
For the Medical Devices subindustry, Smith & Nephew'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.
Smith & Nephew's PEG Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Smith & Nephew's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Smith & Nephew's PEG Ratio falls into.
Smith & Nephew 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.
Smith & Nephew (NYSE:SNN) 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.
Smith & Nephew PEG Ratio Related Terms
Thank you for viewing the detailed overview of Smith & Nephew's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Smith & Nephew (Smith & Nephew) Business Description
Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound-care solutions. Roughly 41% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.
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