PEG Ratio Calculator
Calculate the Price/Earnings-to-Growth (PEG) ratio to evaluate stock value relative to earnings growth.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
PEG = P/E Ratio / Annual EPS Growth Rate (%)
PEG < 1: undervalued; PEG = 1: fairly valued; PEG > 1: possibly overvalued relative to growth.
Frequently Asked Questions
Who invented the PEG ratio?
Popularized by Peter Lynch in "One Up on Wall Street." He used PEG to find fast-growing companies at reasonable prices.