PEG Ratio

Calculate PEG Ratio instantly with the exact formula and a worked example.

PEG Ratio

P/E
EPS growth, %
PEG
1.3333
Calculate PEG Ratio instantly with the exact formula and a worked example.

More about: PEG Ratio

What it calculates

The “PEG Ratio” calculator computes PEG from 2 parameters: p/e, eps growth, %.

Used by investors to estimate returns, project savings, and analyze a portfolio.

Example calculation

With parameters P/E = 20, EPS growth, % = 15 the result is 1.33.

How to use

  1. Enter p/e and eps growth, % — each field above is adjustable with a slider.
  2. PEG is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

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FAQ

What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.

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