Finance

PEG Ratio Calculator

Find the price/earnings-to-growth ratio.

Calculated Output

PEG ratio 1.333

Formula: PEG = P/E ÷ growth rate

Step-by-Step Breakdown

1. Values used:

2. P/E ratio = 20

3. Earnings growth rate = 15 %

5. PEG ratio = P/E ratio / Earnings growth rate = 20 / 15 = 1.333

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The math behind it

PEG = P/E ÷ annual earnings growth rate (in %). Around 1 is often seen as fair value.

P/E 20 ÷ 15% growth → 1.33.

Below 1?

May indicate undervaluation relative to growth.