PEG ratio calculator
Enter the share price, its EPS and the expected yearly earnings growth. It shows both the P/E and the PEG ratio.
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How to use it
- Enter share price, annual eps and expected annual earnings growth.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
PEG = (share price ÷ EPS) ÷ annual earnings growth rate in percent. Example: a P/E of 15 with 10% growth gives 1.5.
Example
Inputs: Share price = 60, Annual EPS = 4, Expected annual earnings growth = 10 %. Result: PEG ratio: 1.5; P/E ratio: 15 x.
Limits and caveats
- The result follows the growth estimate you enter, and estimates can be far off.
- It does not suit companies with volatile or shrinking earnings.
Questions about this tool
How is the PEG ratio read?
The common reading is that about 1 means the P/E matches the growth, below 1 may point to a low price for the growth, and above 1 to a high one. It is a rough rule, not a verdict.
Which growth rate should I use?
Usually the expected average yearly earnings growth over the next few years, from analyst estimates or your own view.
Do I type 10 or 0.10?
Type it as a percentage: 10 means 10%.