# PEG Ratio Calculator

Enter the price to earnings ratio and the annual eps growth into the calculator to determine the PEG Ratio.

## PEG Ratio Formula

The following formula is used to calculate a PEG ratio.

PEG = PE / EPSG

• Where PEG is the price/earnings to growth ratio
• PE is the price to earnings ratio
• EPSG is the annual EPS growth

## PEG Ratio Definition

PEG is short for price to earnings growth ratio. It’s a measure of the ratio of the price to earnings ratio to the annual earnings per share growth.

## PEG Ratio Example

How to calculate a PEG ratio?

1. First, determine the price to earnings ratio.

Calculate the P/E ratio.

2. Next, determine the EPS growth.

Calculate the earnings per share growth.

3. Finally, calculate the PEG ratio.

Calculate the PEG ratio using the equation above.

## FAQ

What is PEG ratio?

A PEG ratio is a ratio of the price to earnings ratio to the overall growth of the earnings per share of a given security or stock. It’s a measure of how much the stock price to earnings changes with the earnings per share growth.