The PEG ratio divides the P/E ratio by the expected earnings growth rate. It adjusts valuation for growth, so a 30× P/E stock growing earnings 40% a year can look cheaper than a 12× P/E stock that isn't growing at all.
The formula
P/E RatioEPS Growth Rate (%)
= PEG Ratio
Why it matters
- —Compares growth stocks fairly against value stocks — a high P/E isn't automatically expensive.
- —Relies on a growth-rate estimate, which is itself a forecast and can be wrong.
- —Most useful for profitable, growing companies — less meaningful for cyclical or no-growth businesses.
How to read it
| < 1.0 | Potentially undervalued relative to its growth rate |
| 1.0–2.0 | Fairly valued |
| > 2.0 | Priced for very high growth, or simply expensive |
Lowest PEG in our coverage
Live · Fisclear coverageNo qualifying data yet — check back as more reports are added.
Want the full picture? Build a custom screen across all metrics, or browse by sector.