PEG Ratio Calculator

About this calculator

This calculator finds the PEG ratio (Price/Earnings-to-Growth), popularized by Peter Lynch: PEG = (P/E ratio) / (annual EPS growth rate, as a whole number, e.g. 15 for 15%). It adjusts the familiar P/E ratio for the company's expected earnings growth, so two stocks with the same P/E but different growth rates get different PEG scores.

Value and growth investors use it as a quick screen — a PEG near 1 is often read as fairly valued, below 1 as potentially undervalued relative to growth, and above 1 as potentially overvalued — though it works best for comparing similar companies in the same sector. Enter the P/E ratio and the earnings growth rate to get the PEG.