PEG Ratio Calculator
Enter the P/E ratio and expected annual earnings growth rate to calculate the PEG ratio.
PEG Ratio Calculator
Calculate the PEG ratio — a stock's P/E ratio adjusted for its expected earnings growth rate.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
The PEG ratio adjusts the P/E ratio for a company's expected growth, dividing P/E by the expected annual earnings growth rate to help compare valuations across companies with different growth profiles.
Example
- With the default values shown above, this calculator returns: PEG Ratio ≈ 2.00.
Frequently Asked Questions
What is the formula?
PEG Ratio = P/E Ratio ÷ Expected Annual Earnings Growth Rate (as a plain number, e.g. 10 for 10%).
What does the PEG ratio tell you?
A PEG ratio around 1 is often considered fairly valued relative to growth; below 1 can suggest undervaluation relative to growth prospects, and above 1 can suggest the stock is pricier relative to its expected growth — though norms vary by sector.