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).

- Price/Earnings Ratio Calculator
- Growth Rate Calculator
- Dividend Growth Calculator
- Diluted Earnings Per Share Calculator (w/ Formula)

## 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 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?

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

**Next, determine the earnings per share growth rate.**Calculate the growth rate of the EPS.

**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.