PEG compares an entered positive P/E with a positive annual EPS growth assumption in percentage units. The horizon describes that assumption rather than adding an exponent. Optional comparisons, growth scenarios and the inverse share the same declared convention; none supplies market data, probabilities or intrinsic value.

How the PEG Ratio Calculator works

Conventional PEG divides a positive price-to-earnings multiple by positive annual EPS growth expressed as a percentage value. For example, P/E 20 and growth 10% produce 20 divided by 10, or PEG 2. Entering the fraction 0.10 would describe 0.10% growth here and produce a different result. The selected growth horizon identifies the assumption; it does not add a power or turn annual growth into cumulative growth.

The inverse uses the same denominator. Target PEG 1.5 with annual EPS growth 20% gives an implied P/E of 30. Selecting the optional PEGY convention adds entered annual dividend yield to annual growth in percentage units: P/E 20, growth 10% and dividend yield 2% use denominator 12. Positive EPS growth remains required.

Below, equal and above describe position relative to your chosen threshold. They do not establish undervaluation, fair value, forecast reliability or investment quality. Equal ratios can hide different risks, financing, reinvestment needs and cash generation. Review those factors separately before using the arithmetic in a financial decision.

Inputs and what they mean

Record whether the growth input is historical annualized EPS growth or a forward expectation. Specify its horizon, source note and source date. P/E can use trailing annual EPS or a forward annual EPS estimate, and these definitions should be compatible with the comparison being made. The calculator warns when historical growth is combined with forward earnings, but it cannot verify any statement, analyst forecast or company-specific accounting definition.

An optional comparison P/E uses the same declared growth assumptions and earnings convention. It does not automatically fetch another company or make different companies economically comparable. Enter a compatible multiple and inspect the source information yourself. Blank comparison inputs leave the primary calculation available, while malformed comparison values make that separate comparison unavailable.

The three scenario names identify user-entered growth alternatives. They are not probabilities, confidence bounds or forecasts, and their order is not enforced as a financial fact. Editing one scenario does not rewrite the main growth input. A selected curve point likewise changes only the inspection, which displays its ratio and implied target P/E.

Limits and edge cases

Zero and negative EPS growth do not produce a positive-growth PEG or PEGY in this calculator. Their curve points remain unavailable rather than being joined through infinity. A positive dividend yield does not override that limitation. A very small positive growth assumption can produce a large finite ratio; scientific notation keeps small nonzero results visible instead of rounding them to zero. Arithmetic outside finite representable values is reported as unavailable.

Results, the growth curve, its text table, scenarios and exports share one model. CSV keeps the unrounded finite values and declared definitions, horizon and source notes. Copy and Print use localized display precision for readable receipts. Their displayed decimals can therefore be shorter than the raw CSV values without changing the underlying calculation.

Inputs remain in the current session unless you explicitly choose Remember. A shared link starts without financial inputs; including them requires a review of every included field, including inactive mode values. Anyone holding that link can read those assumptions. Forget and Reset remove only this calculator’s saved keys, leaving other calculators’ data alone.