How to use this calculator
- Enter p/e ratio, expected earnings growth (% per year).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
PEG ratio = P/E ratio ÷ Expected earnings growth (% per year).
Assumptions and limitations
Expected growth is a user scenario and may not occur. Comparisons require consistent horizons and positive growth.
Worked example
With p/e ratio = 20, expected earnings growth (% per year) = 10, peg ratio is approximately 2.
What the result means
PEG divides P/E by the growth percentage number, such as 10 for 10%, rather than by 0.10.
Common questions
How should I interpret peg ratio?
PEG divides P/E by the growth percentage number, such as 10 for 10%, rather than by 0.10.
What should I check before using this result?
Expected growth is a user scenario and may not occur. Comparisons require consistent horizons and positive growth.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.