PEG ratio
Relate a company’s P/E to its expected earnings growth, so a high multiple can be judged against the growth it is supposed to pay for.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Share price
The current market price per share.
- Earnings per share
The last twelve months’ or next year’s EPS — be consistent, and use the same basis as the growth figure.
- Expected EPS growth
The annual earnings growth you expect over the next few years, as a percentage. This is the least reliable input, so try a range.
- Dividend yield
The dividend as a percentage of the price. Added to growth, it gives PEGY, which gives credit to companies that pay out rather than reinvest.
Worked example: A P/E of 30 for 20% growth
A share trades at ₹1,200 on EPS of ₹40, with earnings expected to grow about 20% a year and a 1% dividend yield.
What to enter
- Share price
- ₹1,200
- Earnings per share
- ₹40
- Expected EPS growth
- 20% / yr
- Dividend yield
- 1%
What it shows you
- P / E
- 30.0×
- PEG
- 1.50
- PEGY (with dividend)
- 1.43
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Fundamental Analysis13 minThe de-rating: why the price falls further than the profitsProfit grew 8% and the stock fell 40%, and nothing was misstated. What a high multiple is actually a statement about, and why a change in expected growth moves the price twice.
- Market Basics11 minMarket cycles, and why they keep repeatingBull markets, bear markets and the psychology that drives both — plus an honest account of why nobody can tell you where we are right now.
- Fundamental Analysis12 minReverse DCF: what the price already assumesInstead of forecasting and getting a value, take the price and solve for the forecast. It turns valuation into a question you can actually answer.
- Risk & Psychology12 minThe stories the market tells itselfPrices move on numbers. Which numbers people look at, and what they take them to mean, is decided by a story — and the story changes faster than the business does.
- Fundamental Analysis12 minValuation ratiosP/E, P/B, EV/EBITDA, P/S and PEG — what each compares, when each is the right tool, and when each one lies.