Stocks
PEG Fair Value
A quick fair-value estimate from earnings and growth.
Your result
With 15% growth, this rule of thumb gives Rs 300 a share, against Rs 250 now.
These are example numbers. Change them to your own.
- Fair value by this rule
- P/E today
- 12.5×
- PEG ratio
- 0.83×
- Against the current price
- 20%
How this works
A rule of thumb from investor Peter Lynch: a fairly priced growing company has a P/E about equal to its growth rate. So fair value = earnings per share × growth rate. It suits steady growers, and says little about loss-making or cyclical companies.
For illustration only, not investment or financial advice. Your numbers are not stored or sent anywhere.