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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

P/E ratio calculator
Underlying P/E.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.