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IDP Education (ASX:IEL) Peter Lynch Fair Value : A$9.80 (As of May. 10, 2024)


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What is IDP Education 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, IDP Education's PEG is 1. IDP Education's 5-Year TTM EBITDA Growth Rate is 18.39. IDP Education's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was A$0.53. Therefore, the Peter Lynch Fair Value for today is A$9.80.

As of today (2024-05-10), IDP Education's share price is A$16.35. IDP Education's Peter Lynch fair value is A$9.80. Therefore, IDP Education's Price to Peter Lynch Fair Value Ratio for today is 1.67.


The historical rank and industry rank for IDP Education's Peter Lynch Fair Value or its related term are showing as below:

ASX:IEL' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.64   Med: 4.19   Max: 12.92
Current: 1.67


During the past 8 years, the highest Price to Peter Lynch Fair Value Ratio of IDP Education was 12.92. The lowest was 1.64. And the median was 4.19.


ASX:IEL's Price-to-Peter-Lynch-Fair-Value is ranked worse than
77.46% of 71 companies
in the Education industry
Industry Median: 0.9 vs ASX:IEL: 1.67

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


IDP Education Peter Lynch Fair Value Historical Data

The historical data trend for IDP Education'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.

IDP Education Peter Lynch Fair Value Chart

IDP Education Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Peter Lynch Fair Value
Get a 7-Day Free Trial - - 1.90 5.68 9.80

IDP Education Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - 5.68 - 9.80 -

Competitive Comparison of IDP Education's Peter Lynch Fair Value

For the Education & Training Services subindustry, IDP Education'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.


IDP Education's Price-to-Peter-Lynch-Fair-Value Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where IDP Education's Price-to-Peter-Lynch-Fair-Value falls into.



IDP Education Peter Lynch Fair Value Calculation

IDP Education'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* 18.39 *0.533
=9.80

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. IDP Education's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was A$0.53.


* 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.


IDP Education  (ASX:IEL) 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 18.39 instead of 15 in this case.

IDP Education'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
=16.35/9.80
=1.67

* 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.


IDP Education Peter Lynch Fair Value Related Terms

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IDP Education (ASX:IEL) Business Description

Traded in Other Exchanges
Address
697 Collins Street, Level 10, Docklands, VIC, AUS, 3008
IDP Education is a global leader in English language testing and student placement services, constituting 64% and 27% of fiscal 2022 group revenue, respectively. Additionally, IDP operates English language schools, organizes education events and delivers consultancy services to education institutions, which constitutes the remainder of group revenue. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.

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