PEGY Ratio Calculator
Work out a stock's PEGY ratio — its P/E ratio weighed against expected earnings growth plus dividend yield — from share price, earnings per share, growth estimate, and dividend yield. See the plain PEG and P/E ratios alongside it to compare.
Inputs
A PEG of 2.0 looks overvalued, but the 5% dividend brings the PEGY down to a fair 1.0 — PEGY rewards the income.
The current market price of one share.
Trailing twelve-month net income divided by shares outstanding.
Analyst consensus or your own multi-year growth estimate.
Annual dividends per share ÷ share price × 100. This is what separates PEGY from PEG.
PEGY ratio formulas
P/E ratio
share price ÷ earnings per share (EPS)
PEGY ratio
P/E ratio ÷ (EPS growth rate % + dividend yield %)
PEG ratio (for comparison)
P/E ratio ÷ EPS growth rate (%), ignoring dividends
Earnings yield
EPS ÷ share price × 100 (the inverse of P/E)
About the PEGY Ratio Calculator
The PEGY ratio (price/earnings to growth and yield ratio) is a variation of the PEG ratio that adds dividend yield into the denominator. Instead of dividing the P/E ratio only by expected earnings growth, PEGY divides it by growth plus dividend yield — giving credit to companies that return cash to shareholders even when their growth is modest.
This matters most for mature, dividend-paying businesses. A slow-growing utility or bank might look expensive on a plain PEG basis, but if it also pays a healthy dividend, the total return story is stronger than growth alone suggests. PEGY captures that by treating dividend yield as another form of shareholder return, on equal footing with earnings growth.
This calculator works out the trailing P/E ratio from a share price and earnings per share (EPS), or from net income and shares outstanding if you do not already have an EPS figure. It then divides that P/E by growth plus dividend yield to give PEGY, while also showing the plain PEG ratio so you can see exactly how much the dividend is improving — or not changing — the picture.
How to Use the PEGY Ratio Calculator
- 1 Enter the current share price — the latest market price for one share of the stock.
- 2 Provide earnings per share — enter EPS directly if you know it, or switch to "Calculate from net income" and enter net income plus shares outstanding.
- 3 Enter an expected annual EPS growth rate — use an analyst consensus estimate or your own multi-year projection.
- 4 Enter the dividend yield — annual dividends per share as a percentage of the share price. This is what makes PEGY different from PEG.
- 5 Read your results — the PEGY ratio, PEG ratio, P/E ratio, and earnings yield update automatically as you type.
Frequently Asked Questions
What is a good PEGY ratio? ▾
As with PEG, a PEGY around 1 is traditionally read as fair value, below 1 as potentially undervalued, and above 2 as potentially overvalued. Because PEGY divides by a larger number (growth plus yield), it is usually equal to or lower than the PEG ratio for the same stock.
How is PEGY different from PEG? ▾
PEG divides the P/E ratio by expected earnings growth alone. PEGY divides it by growth plus dividend yield. For a stock that pays no dividend, PEGY and PEG are identical. For a stock with a meaningful dividend, PEGY will be lower than PEG, reflecting the extra return from dividends.
When should I use PEGY instead of PEG? ▾
PEGY is most useful for income-oriented and mature stocks — utilities, REITs, banks, consumer staples — where dividends are a core part of the investment case. For fast-growing companies that reinvest everything and pay no dividend, PEG alone is simpler and gives the same result.
Can a high dividend yield make a bad stock look good on PEGY? ▾
Yes, and this is the main risk with PEGY. A very high yield can sometimes signal a struggling company whose share price has fallen sharply, or a dividend that is at risk of being cut. Always check dividend sustainability — payout ratio, free cash flow cover, and balance sheet health — before treating a low PEGY as a green light.
What does "N/A" mean for PEGY? ▾
PEGY shows "N/A" when earnings are negative (P/E is not meaningful) or when growth plus dividend yield is zero or negative. Dividing by a non-positive number would produce a misleading or negative ratio, so the calculator avoids showing one.