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PEG Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

PEG ratio

2.00

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the PEG Ratio Calculator

The PEG Ratio Calculator works out your peg ratio in an instant. Enter price-to-earnings (p/e) ratio and annual earnings growth rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the price-to-earnings (p/e) ratio.
  2. Enter the annual earnings growth rate.
  3. Read off your peg ratio — the calculator updates automatically, with no button to press.

Formula

The PEG Ratio Calculator uses the formula:

PEG ratio = Price-to-earnings (P ÷ E) ratio ÷ Annual earnings growth rate

Worked example

For example, with price-to-earnings (p/e) ratio of 20 and annual earnings growth rate of 1%, the peg ratio is 2.00.

Inputs used
Price-to-earnings (P/E) ratio 20
Annual earnings growth rate 1%
Results
PEG ratio 2.00

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is the price-to-earnings ratio divided by the earnings growth rate, putting valuation in the context of growth.

A PEG near 1 is often seen as fairly valued; below 1 may be undervalued, and above 1 may be expensive for its growth.

A high P/E can be justified by fast growth. PEG adjusts for that, so growing companies are compared fairly.

Typically expected annual earnings growth over the next few years, entered as a percentage.

The PEG Ratio Calculator uses the formula: PEG ratio = Price-to-earnings (P ÷ E) ratio ÷ Annual earnings growth rate. For example, with price-to-earnings (p/e) ratio of 20 and annual earnings growth rate of 1%, the peg ratio is 2.00.

Enter the price-to-earnings (p/e) ratio. Enter the annual earnings growth rate. Read off your peg ratio — the calculator updates automatically, with no button to press.

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