P/E adjusted for growth.
A worked example
Starting figures
- P/E ratio
- 22
- Earnings growth
- 14%
What it returns
- PEG
- 1.57
- Reading
- Priced ahead of growth
How to read the results
With the defaults above, peg works out at 1.57.
P/E adjusted for growth.
PEG
1.57
Reading
Priced ahead of growth
With these inputs, PEG comes to 1.57.
| Input | −10% | Now | +10% |
|---|---|---|---|
| P/E ratio | 1.41 | 1.57 | 1.73 |
| Earnings growth | 1.75 | 1.57 | 1.43 |
Save this set of inputs, change something, then save again to compare the outcomes side by side.
P/E adjusted for growth.
With the defaults above, peg works out at 1.57.