Calculator
PEG ratio calculator
P/E divided by an expected annual earnings growth rate you enter. Type your own numbers; nothing is sent anywhere.
The formula
PEG = P/E รท annual earnings growth (in percent)
A worked example
A P/E of 20 and 10% growth give a PEG of 2.00.
How to read it
The PEG ratio tries to put P/E in the context of growth. The growth figure is a forecast and there is no single correct one, so two people can compute very different PEG ratios for the same company. It needs growth above zero.
Educational, not investment advice. The result is arithmetic on the inputs you typed.
Using real company figures
Company pages show the EPS, book value per share and free cash flow per share from each company's latest annual report to the SEC, which you can copy into this calculator. Browse 487 companies or start the worksheet with a company.
Questions
Which growth rate?
Whatever you decide to assume. We do not publish forecasts.
Is a PEG of 1 a rule?
No. It is an old heuristic. This site does not interpret it for you.
Other calculators
- Graham numberThe square root of 22.5 times earnings per share times book value per share.
- Discounted cash flowPresent value of future free cash flow per share, using growth and discount rates you choose.
- P/E ratioPrice divided by earnings per share, and its inverse, the earnings yield.
- Book value per shareShareholders' equity divided by shares, and the price-to-book ratio if you add a price.
- Dividend discount modelValue of a dividend that grows at a steady rate, discounted at the return you require.
- Free cash flow yieldFree cash flow per share as a percentage of a price you enter.
- Return on equityNet income divided by shareholders' equity.