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

## PEG Ratio Definition

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