Enter the price to earnings ratio and the growth rate of the earnings per share. The calculator will evaluate and display the price-earnings to growth rate ratio (PEG).

## PEG Ratio Formula

The following formula is used to calculate the price-earnings to growth rate ratio.

PEG = (P:E)/ EPSG
• Where PEG is the price-earnings to growth rate ratio
• P:E is the price-earnings ratio
• EPS is the earning per share growth rate

To calculate the PEG ratio, divide the price to earnings ratio by the earning per share growth rate.

## PEG Ratio Definition

The PEG ratio is a financial term that described the ratio of the price-earnings ratio and the rate of growth of the earnings per share. The lower the ratio the lower the higher the earnings per share growth rate.

## PEG Ratio Example

How to calculate PEG ratio?

1. First, determine the price to earnings ratio.

Calculate the price to earnings ratio. Visit the calculator linked above if you need help with this.

2. Next, determine the earnings per share growth rate.

Calculate the growth rate of the EPS.

3. Finally, calculate the PEG ratio.

Calculate the price to earnings growth ratio using the formula above.

## FAQ

What is a PEG ratio?

A PEG ratio is a ratio of the price to earnings ratio to the earnings per share growth rate.