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Our Valuation · Intermediate · Pro filter

PEG on our 3-year EPS growth: what it means and how to read it

The P/E divided by the company's earnings-per-share growth over the last three years, worked out from the stored accounts.

What is PEG on our 3-year EPS growth?

The P/E divided by the company's earnings-per-share growth over the last three years, worked out from the stored accounts.

A PEG is only as trustworthy as the growth figure under it. Data vendors publish a PEG without saying whether the growth is a forecast or a record, or over what period. This version uses the three-year EPS growth from the accounts held here, so the arithmetic can be followed.

When the two PEG figures disagree, the reason is usually that the vendor used forecast growth. That difference is itself information about how much the market expects earnings to change.

How it is calculated

PEG = P/E ÷ three-year compound growth rate of EPS, in percent, from the company's reported accounts.

A worked example

A P/E of 24 with EPS that grew 16% a year over three years: PEG = 1.5.

Why does PEG on our 3-year EPS growth matter?

It is the same yardstick as the usual PEG, built on a growth figure you can see and check instead of one a data vendor does not disclose.

What is a good PEG on our 3-year EPS growth?

Around 1 is fairly priced for the growth. Well above 2 means paying for growth that has to arrive. Read it beside the vendor's PEG.

Around 1 is the classic fair value marker. It has no meaning when growth was negative or close to zero, and is left empty in those cases.

Reading scale

In ×
0123+
On the scale used here, below 1 reads as cheap for growth, 1 to 2 reads as fair, and 2 and above reads as pricey for growth.
Lower is usually better.

What are the common mistakes with PEG on our 3-year EPS growth?

Using it after a year of unusually low or high profit, which distorts the three-year rate.
Forgetting that past growth need not continue.

What is a typical PEG on our 3-year EPS growth in India today?

The median across the 1682 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.

By company size

Median
Large Cap · 88 companies1.78
Mid Cap · 109 companies2.05
Small Cap · 1485 companies0.81

By industry

Median, largest industries first
Private Sector Bank · 150.64
Pharmaceuticals · 791.76
Computers - Software & Consulting · 341.13
Public Sector Bank · 110.28
Non Banking Financial Company (NBFC) · 410.72
Power Generation · 120.49
Auto Components & Equipments · 651.54
Iron & Steel · 111.06
Aerospace & Defense · 152.08
Civil Construction · 400.52
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.

Screen 6622 companies on PEG on our 3-year EPS growth and every other filter.