Source: https://mochatrade.com/learn/glossary/peg-ratio

# PEG ratio
URL: https://mochatrade.com/learn/glossary/peg-ratio
Last modified: 2026-10-17

The PEG ratio is P/E divided by expected annual earnings growth in percent, so a P/E of 30 with 30% growth gives a PEG of 1. It rests on a growth forecast that [guidance moves every quarter](https://mochatrade.com/learn/us-market-structure/us-earnings-explained), and on [rate nights](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets) the P/E underneath it moves too.

## Related terms

- Guidance (earnings guidance): https://mochatrade.com/learn/glossary/guidance
- P/E ratio: https://mochatrade.com/learn/glossary/p-e-ratio
- Price-to-sales ratio: https://mochatrade.com/learn/glossary/price-to-sales-ratio
- EBITDA: https://mochatrade.com/learn/glossary/ebitda
- Revenue: https://mochatrade.com/learn/glossary/revenue
- Bull and bear market: https://mochatrade.com/learn/glossary/bull-and-bear-market