Forward PEG Ratio Calculator

Formula

The formula to calculate the forward PEG ratio (PEG) is:

\[ PEG = \frac{PE}{G} \]

Where:

$ PEG $ is the forward PEG ratio
$ PE $ is the forward price-to-earnings ratio
$ G $ is the expected earnings growth rate as a percentage

Definition

Forward PEG Ratio: A valuation metric used to determine the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. It is an extension of the price-to-earnings (P/E) ratio that takes into account the expected earnings growth rate. A lower PEG ratio may indicate that a stock is undervalued given its expected growth, while a higher PEG ratio may suggest that a stock is overvalued.

Example

Let's say the forward price-to-earnings ratio (PE) is 15 and the expected earnings growth rate (G) is 10%. Using the formula:

\[ PEG = \frac{15}{10} \]

We get:

\[ PEG = 1.5 \]

So, the forward PEG ratio is 1.5.

Extended information about "Forward-PEG-Ratio-Calculator"

PEG Ratio vs Forward PE

Definition: The PEG ratio compares a company's P/E ratio to its expected earnings growth rate, while the forward P/E ratio uses projected earnings.

PEG Ratio How to Calculate

Definition: The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate.

Formula: $ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} $

P/E Ratio: Price-to-Earnings Ratio
Earnings Growth Rate: The expected growth rate of earnings

Example: $ \text{PEG Ratio} = \frac{20}{10} $

P/E Ratio: 20
Earnings Growth Rate: 10%

How to Calculate Forward PE Ratio

Definition: The forward P/E ratio is calculated by dividing the current share price by the projected earnings per share.

Formula: $ \text{Forward P/E Ratio} = \frac{\text{Current Share Price}}{\text{Projected Earnings per Share}} $

Current Share Price: The current market price of the share
Projected Earnings per Share: The expected earnings per share

Example: $ \text{Forward P/E Ratio} = \frac{50}{5} $

Current Share Price: $50
Projected Earnings per Share: $5

PEG Ratio Calculation Example

Definition: The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate.

Formula: $ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} $

P/E Ratio: Price-to-Earnings Ratio
Earnings Growth Rate: The expected growth rate of earnings

Example: $ \text{PEG Ratio} = \frac{15}{7} $

P/E Ratio: 15
Earnings Growth Rate: 7%

Formula for PEG Ratio

Definition: The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate.

Formula: $ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} $

P/E Ratio: Price-to-Earnings Ratio
Earnings Growth Rate: The expected growth rate of earnings

Example: $ \text{PEG Ratio} = \frac{25}{12} $

P/E Ratio: 25
Earnings Growth Rate: 12%

How to Calculate PEG Ratio with Examples

Definition: The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate.

Formula: $ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} $

P/E Ratio: Price-to-Earnings Ratio
Earnings Growth Rate: The expected growth rate of earnings

Example: $ \text{PEG Ratio} = \frac{18}{9} $

P/E Ratio: 18
Earnings Growth Rate: 9%

How to Find Forward PE Ratio

Definition: The forward P/E ratio is calculated by dividing the current share price by the projected earnings per share.

Formula: $ \text{Forward P/E Ratio} = \frac{\text{Current Share Price}}{\text{Projected Earnings per Share}} $

Current Share Price: The current market price of the share
Projected Earnings per Share: The expected earnings per share

Example: $ \text{Forward P/E Ratio} = \frac{60}{6} $

Current Share Price: $60
Projected Earnings per Share: $6

PEG Ratio Formula Example

Definition: The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate.

Formula: $ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} $

P/E Ratio: Price-to-Earnings Ratio
Earnings Growth Rate: The expected growth rate of earnings

Example: $ \text{PEG Ratio} = \frac{22}{11} $

P/E Ratio: 22
Earnings Growth Rate: 11%