PEG Ratio Calculator
PEG Ratio Calculator
Component | Description |
---|---|
Price-to-Earnings (P/E) Ratio | The ratio of a company’s share price to its earnings per share (EPS). |
Earnings Growth Rate | The annual growth rate of a company’s earnings. |
PEG Ratio | The ratio of the P/E ratio to the earnings growth rate, used to determine a company’s value relative to its growth. |
Formula | PEG Ratio = Price-to-Earnings (P/E) Ratio / Earnings Growth Rate |
Purpose | Used to assess a company’s value by comparing its P/E ratio to its earnings growth rate. |