Jack's PEG and Return on Investment Calculator


Please use, with my compliments, Jack's PEG and ROI Calculator. It will calculate a stock's P/E, growth rate and PEG for you, automatically. It will also show you what your expected return on investment will be for up to 20 years. Further, it will allow you to quickly compare one stock to another.

Before you use the calculator for the first time, click here to read an explanation of how it is used and what it will tell you.

To use the calculator enter the stock's current price and this year's and next year's expected earnings. Make sure to use a decimal if a number is less than a dollar. If you don't know a stock's expected earnings, click here to get consensus earnings estimates from Zack's, (enter symbol where it says "Get Research") then hit the "back" button on your browser to return here.

A green background in the Cumulative ROI column means the return to that point is higher than the return of the stock being compared. There is a second section to the calculator after the explanatory comments below. Make sure you don't skip it. Note that zero or negative earnings (losses) will not calculate. They will return a non-meaningful response.

Stock A
Stock Price
This Year's Earnings
Next Year's Earnings
P/E Ratio Equals 9.0
Growth Rate Equals 12.5%
PEG Equals 0.7
 
Stock B
Stock Price
This Year's Earnings
Next Year's Earnings
P/E Ratio Equals 136.4
Growth Rate Equals 40.9%
PEG Equals 3.3
       
Stock A After
Year
No.
Stock B
Yearly
Earnings
ROI in
This Year
Cumulative
Earnings
Cumulative
ROI
Yearly
Earnings
ROI in
This Year
Cumulative
Earnings
Cumulative
ROI
$2.2512.5%$2.2512.5%1$0.311.0%$0.311.0%
$2.5314.1%$4.7826.6%2$0.441.5%$0.752.5%
$2.8515.8%$7.6342.4%3$0.622.1%$1.364.5%
$3.2017.8%$10.8360.2%4$0.872.9%$2.237.4%
$3.6020.0%$14.4480.2%5$1.224.1%$3.4511.5%
$6.4936.1%$40.45225%10$6.7922.6%$22.6375.4%
$11.7065.0%$87.33485%15$37.71126%$129.15430%
$21.09117%$171.81955%20$209.51698%$720.882,403%

What Section One Shows

The above interactive table shows the actual earnings and percentage return on investment the company earns on your money. All else being equal, over time that should translate into a similar return to you, the shareholder, in the form of a higher stock price. Section Two (below) shows what that stock price would be under various scenarios.

As market sentiment changes toward different sectors and specific stocks. Wall Street awards higher or lower price/earnings ratios to these investments. The table below shows the effect that a range of possible future P/Es may have on your stock's price. This is important because high P/E stocks that are "hot" now, not only may slow in growth in coming years, but may be awarded lower P/Es as the euphoria wanes. Conversely, out-of-favor sectors and stocks will usually be awarded higher P/Es as the market's perception of their prospects improves.

Stock A
Projected
Stock Price
After
3 Years
After
5 Years
After
10 Years
At Current P/E$25.63$32.44$58.45
At P/E of 12$34.17$43.25$77.94
At P/E of 15$42.71$54.06$97.42
At P/E of 20$56.95$72.08$129.89
At P/E of 25$71.19$90.10$162.37
At P/E of 30$85.43$108.12$194.84
 
Stock B
Projected
Stock Price
After
3 Years
After
5 Years
After
10 Years
At Current P/E$83.93$166.65$925.79
At P/E of 12$7.39$14.67$81.47
At P/E of 15$9.23$18.33$101.84
At P/E of 20$12.31$24.44$135.78
At P/E of 25$15.39$30.55$169.73
At P/E of 30$18.47$36.66$203.67

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