Skip to content
ENExplore Calculators

PEG Ratio

Free PEG Ratio calculator with clear step-by-step results.

About PEG Ratio

PEG relates the P/E multiple to expected growth so faster growers are not automatically 'expensive'.

Formula

Formula

PEG = P/E ÷ earnings growth

Worked example

With the default values below, PEG Ratio returns PEG Ratio of 1.33. Change any input above and every figure here is recalculated in your browser.

Inputs used

P/E ratiominimum 0
20
Expected earnings growth (%)accepts 0–100
15

Results

PEG Ratio
1.33
Valuation
Reasonable
Growth Used
15.0%

Step by step

  1. 1Values used
  2. 2Formula
  3. 3PEG Ratio= 1.33
  4. 4Valuation= Reasonable
  5. 5Growth Used= 15.0

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How does this calculator work?

PEG relates the P/E multiple to expected growth so faster growers are not automatically 'expensive'.

Why does this matter?

Growth estimates are forecasts and can be wrong.

Related Calculators

PEG Ratio – Calculate PEG Ratio & Valuation | Calcrivo