PEG Ratio Calculator

Your details

The current market price of one share.
Annual net earnings divided by shares outstanding. Use trailing or forward EPS to match the growth rate you enter.
Expected annual earnings growth as a whole number. Enter 20 for 20%, not 0.20.
%
Currency
PEG ratioFairly valued
1.5
P/E ratio30
Growth rate used20%
1.5
Undervalued<1Fairly valued1-1.5Pricey1.5-2Overvalued2+

The PEG ratio is 1.5.

  • A PEG around 1 is the textbook fair-value mark: the price you pay roughly matches the growth you expect.
  • This P/E of 30 divided by a 20% growth rate gives the PEG of 1.5.
  • PEG is only as good as the growth estimate. A higher assumed growth rate lowers the PEG and can make almost any stock look cheap.

Next stepCompare this PEG against industry peers and sanity-check the growth assumption before drawing a conclusion.

 = Powered by OnlyCalculators