Calculator
PEG ratio calculator
The PEG ratio adjusts P/E for expected earnings growth. It's Peter Lynch's shortcut for spotting stocks that are cheap or expensive relative to growth.
Updated July 2026
$
$
%
P/E ratio
20.00
PEG ratio
1.33
Fairly priced
How it works
PEG = P/E ÷ Annual EPS Growth Rate (%)
- Enter share price, EPS, and expected annual EPS growth.
- The calculator computes P/E and divides by growth to produce PEG.
Worked examples
- P/E of 30, 20% EPS growth → PEG 1.5 (moderately expensive).
- P/E of 15, 15% EPS growth → PEG 1.0 (roughly fair).
Frequently asked questions
Is PEG under 1 a buy?
Traditionally yes — but only if the growth assumption is realistic. Optimistic growth estimates flatter the PEG unfairly.
Related
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.