Free PEG Ratio Calculator
Assess Stock Growth Relative to Price with PEG
The PEG Ratio Calculator helps investors evaluate a stock’s valuation by comparing its Price-to-Earnings (P/E) ratio with its expected earnings growth. By entering the P/E ratio and projected growth rate, this tool calculates the PEG ratio, providing insight into whether the stock is overvalued, fairly priced, or undervalued relative to growth. This calculator is ideal for growth-oriented investors seeking to balance valuation and growth potential. Regular use can improve investment decisions, identify promising stocks, and minimize risks. Easy to use and accurate, this PEG Ratio Calculator allows both beginners and experienced investors to quickly analyze stocks and optimize their portfolio strategy.
PEG Ratio Calculator
Calculate the Price/Earnings to Growth ratio of a stock.
Calculation Results
PEG Ratio
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Calculation Breakdown
PEG Ratio Calculator Guide
The Formula We Use
P/E Ratio = Price per Share ÷ Earnings per Share (EPS)Growth Rate (g) = expected annual EPS growth in percentPEG Ratio = (P/E) ÷ gInput tip: enter g as a whole number, for example 12 for 12%- Reading: near 1 may imply fair value, below 1 may imply value if assumptions hold, above 1 may imply premium
Example Calculation (USD)
- P/E = 60 ÷ 3.00 = 20.0
- PEG = 20.0 ÷ 12 ≈ 1.67
- Result suggests a modest premium given the inputs
How to Use This Calculator
- Enter Price per Share, EPS, and expected EPS growth percent.
- We compute P/E and PEG from your inputs.
- Compare PEG to peers and to the firm history.
- Run best case and base case with different growth inputs.
Tips to Interpret PEG
- Use forward EPS growth from a reliable source for better realism.
- Very low PEG can reflect one time earnings or low quality growth.
- Context by sector matters since growth profiles differ.
- Combine with ROE, margins, and cash flow to judge quality.
- PEG is less useful for firms with flat or negative EPS.
Educational content only. Not financial advice.
Benefits of Using PEG Ratio Calculator
Growth Adjusted Valuation
Understand stock valuation considering earnings growth rate.
Instant Results
Get the PEG ratio immediately with price, EPS, and growth inputs.
Beginner & Expert Friendly
Simple enough for beginners, detailed for experienced investors.
Accurate Calculations
Precise PEG ratio results for better decision making.
Supports Global Stocks
Works with companies listed in multiple countries.
Data Privacy
No data is stored; calculations are performed in your browser.
Frequently Asked Questions
What is the PEG ratio?
PEG ratio is the Price-to-Earnings ratio divided by the annual EPS growth rate.
Why is PEG ratio important?
It helps identify undervalued stocks considering growth potential.
Can I use it for international stocks?
Yes, enter the stock price, EPS, and growth rate in your currency.
Is it suitable for beginners?
Yes, with simple inputs and clear results.
Can I calculate historical PEG ratios?
Yes, just input past price and earnings data.
Is my data secure?
All calculations are done locally in your browser.