Forward Price to Earnings Growth Ratio (Forward PEG)
Calculate the forward price earnings to growth (forward PEG) ratio, a valuation metric that measures the forward P/E ratio relative to the growth implied by the analyst consensus (average) EPS estimate versus the company’s most recently reported actual EPS.
The formula is as follows:
\[\text{Estimated EPS Growth Rate} = (\text{Estimated EPS} - \text{Trailing EPS}) / | \text{Trailing EPS} |\] \[\text{Forward PEG} = \text{Forward} P / E / (\text{Estimated EPS Growth Rate} \cdot 100)\]Note that this requires an api_key to be set on the Toolkit and a Premium FMP subscription. Analyst estimates are fetched once per Toolkit instance and cached across calls to this (or the other forward-looking ratio) method - never on initialization or on any other ratio.
Also known as: forward PEG, PEG on forward growth.
Forward Price to Earnings Growth Ratio (Forward PEG) in Python
get_forward_price_earnings_growth_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_forward_price_earnings_growth_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "MSFT"], api_key="FINANCIAL_MODELING_PREP_KEY")
toolkit.ratios.get_forward_price_earnings_growth_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | -2.26 | -2.8269 | -3.6172 | -4.6544 | -40.6636 |
| MSFT | -1.1385 | -1.2822 | -1.3423 | -2.918 | -17.48 |
Parameters
get_forward_price_earnings_growth_ratio accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.