PEG Ratio Calculator
Calculate the PEG ratio to evaluate whether a stock's P/E ratio is justified by its expected earnings growth.
How to Use the PEG Ratio Calculator
- Enter the P/E ratio.
- Enter expected annual earnings growth rate.
- Click Calculate.
- Review PEG ratio and valuation signal.
Anwendungsfälle
- •Growth stock screening
- •GARP investing strategy
- •Relative valuation
Formel
PEG = P/E Ratio / Earnings Growth Rate
Häufig gestellte Fragen
What is a good PEG ratio?
A PEG below 1 suggests the stock may be undervalued relative to its growth, while above 1.5 may indicate overvaluation.
How is PEG better than P/E?
PEG adjusts the P/E ratio for growth, so a high P/E company with high growth may have a reasonable PEG.
Is this calculator free?
Yes, all calculators are completely free.