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Focusrite (LSE:TUNE) Peter Lynch Fair Value : £9.60 (As of May. 13, 2024)


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What is Focusrite 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, Focusrite's PEG is 1. Focusrite's 5-Year TTM EBITDA Growth Rate is 25. Focusrite's EPS without NRI for the trailing twelve months (TTM) ended in Feb. 2024 was £0.38. Therefore, the Peter Lynch Fair Value for today is £9.60.

As of today (2024-05-13), Focusrite's share price is £3.80. Focusrite's Peter Lynch fair value is £9.60. Therefore, Focusrite's Price to Peter Lynch Fair Value Ratio for today is 0.40.


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

LSE:TUNE' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.4   Med: 1.16   Max: 1.59
Current: 0.4


During the past 12 years, the highest Price to Peter Lynch Fair Value Ratio of Focusrite was 1.59. The lowest was 0.40. And the median was 1.16.


LSE:TUNE's Price-to-Peter-Lynch-Fair-Value is ranked better than
88.44% of 147 companies
in the Travel & Leisure industry
Industry Median: 1.12 vs LSE:TUNE: 0.40

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


Focusrite Peter Lynch Fair Value Historical Data

The historical data trend for Focusrite'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.

Focusrite Peter Lynch Fair Value Chart

Focusrite Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.98 5.25 14.38 12.48 9.60

Focusrite Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 - 12.48 - 9.60 -

Competitive Comparison of Focusrite's Peter Lynch Fair Value

For the Leisure subindustry, Focusrite'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.


Focusrite's Price-to-Peter-Lynch-Fair-Value Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Focusrite's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

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



Focusrite Peter Lynch Fair Value Calculation

Focusrite'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* 25 *0.384
=9.60

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Focusrite's EPS without NRI for the trailing twelve months (TTM) ended in Feb. 2024 was £0.38.


* 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.


Focusrite  (LSE:TUNE) 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 25 instead of 15 in this case.

Focusrite'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
=3.80/9.60
=0.40

* 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.


Focusrite Peter Lynch Fair Value Related Terms

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Focusrite (LSE:TUNE) Business Description

Traded in Other Exchanges
Address
Hillbottom Road, Artisan, High Wycombe, Buckinghamshire, GBR, HP12 4HJ
Focusrite PLC is a music and audio products company supplying hardware and software products used by professional and amateur musicians. The company's operating segment includes Focusrite, Novation, ADAM Audio, Martin Audio, Sequential, and Sonox. It generates maximum revenue from the Focusrite segment. Focusrite segment includes sales of Focusrite and Focusrite Pro branded products. Geographically, majority of its revenue is generated from North America.

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