Peg Ratio Calculator

Background.

Use Peg Ratio Calculator when you need to divide a P/E multiple by an entered expected growth percentage. PEG scales a valuation multiple by a growth forecast, conventionally treating the percentage number as the divisor. Here the arithmetic follows “PEG ratio = price-to-earnings ratio / expected earnings growth percentage,” rather than silently mixing alternatives.

The editable entries are price-to-earnings ratio, expected annual earnings growth entered as a percentage number. Use values from the document or measurement that governs this peg ratio question; the defaults are only the worked fixture below. The most consequential input mistake would be to ignore that a growth input of twenty means twenty, not 0.20; negative growth, forecast horizon and earnings quality can make PEG meaningless.

U.S. SEC, Beginners' Guide to Financial Statements; income-statement and balance-sheet relationships documents the convention or governing rule used here. The peg ratio output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is peg ratio calculator?

Peg Ratio is the relationship behind this decision: pEG scales a valuation multiple by a growth forecast, conventionally treating the percentage number as the divisor. On this page it means PEG ratio = price-to-earnings ratio / expected earnings growth percentage. A growth input of twenty means twenty, not 0.20; negative growth, forecast horizon and earnings quality can make PEG meaningless; that is the line between the reported quantity and a broader business finance analysis.

How to use this calculator.

1. 01Confirm that “PEG ratio = price-to-earnings ratio / expected earnings growth percentage” matches the peg ratio convention you need.
2. 02Replace the fixture values for price-to-earnings ratio, expected annual earnings growth entered as a percentage number with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read peg ratio together with this boundary: A growth input of twenty means twenty, not 0.20; negative growth, forecast horizon and earnings quality can make PEG meaningless.

The formula.

The calculation uses PEG ratio = price-to-earnings ratio / expected earnings growth percentage. In this peg ratio model, the entered terms are price-to-earnings ratio, expected annual earnings growth entered as a percentage number. PEG scales a valuation multiple by a growth forecast, conventionally treating the percentage number as the divisor, which is why the relationship is presented under this name rather than as a universal alternative. A growth input of twenty means twenty, not 0.20; negative growth, forecast horizon and earnings quality can make PEG meaningless. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]U.S. SEC, Beginners' Guide to Financial Statements; income-statement and balance-sheet relationships. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]U.S. Securities and Exchange Commission. Investor.gov glossary: Earnings per share (EPS). Retrieved 2026-08-07. independence: primary; access: open.
3. [3]U.S. Securities and Exchange Commission. Investor.gov: Assessing your risk tolerance. Retrieved 2026-08-07. independence: secondary-check; access: open.