PEG Ratio Growth Valuation Calculator

The common PEG convention divides the P/E multiple by the numerical percentage growth rate, so twelve percent is entered as 12. Using 0.12 would make the result one hundred times larger. This convention is different from formulas that use growth as a decimal. Always inspect the displayed input suffix and formula before comparing outputs.

The calculator can show the arithmetic for negative growth, but conventional positive-growth interpretation generally breaks down. A negative PEG can arise from negative growth, negative earnings, or both, and those cases are not ordered like ordinary positive multiples. Examine earnings quality, cyclicality, forecasts, balance-sheet risk, and an alternative valuation framework rather than relying on the sign.

Use a forecast whose earnings definition matches the P/E numerator, and record its source, horizon, currency, and treatment of unusual items. Near-term growth can be distorted by a depressed base; long-term consensus estimates can be uncertain. Test more than one defensible scenario and avoid comparing companies when forecast conventions or analyst coverage differ materially.