PEG ratio: P/E adjusted for growth
PEG is P/E divided by the earnings growth rate in percent. It answers whether growth is too expensive: a P/E of 30 for a company growing earnings 30% a year gives a PEG of 1, the same P/E with 10% growth gives a PEG of 3.
Formula
How to read it
- Around 1: the price matches the growth. A popular rule of thumb, not a law.
- Below 1: growth is inexpensive, if it continues.
- The weak spot is the growth rate. Past growth promises nothing, a forecast may not come true. With zero or negative growth PEG is meaningless and not calculated.
Live exampletrailing 12 months · data as of Nov 5, 2026
A high P/E with a low PEG means earnings grow fast enough to justify the price. A dash means earnings growth is negative and PEG is not calculated.
Rows in the terminal
PEG GAAP (TTM) — P/E adjusted for growth
P/E divided by the expected earnings growth rate. The idea is simple: a business expensive on P/E is not expensive if its earnings grow fast. Around 1 the growth is priced fairly; well below — the market barely pays for growth; well above — you are paying in advance.
PEG Non-GAAP (FWD) — the same, on estimates
Forward P/E on adjusted earnings divided by their expected growth rate. Sensitive to the denominator: when expected growth is close to zero the number blows up and comparing it is meaningless.
Frequently asked questions
Why is PEG missing for some companies?
When earnings are flat or falling, dividing by growth makes no sense.
Related terms
All 109 metrics for every stock, compared with its sector — in the terminal
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