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.

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Calculate the Forward Price to Earnings Growth Ratio (Forward PEG) in Python

The Forward Price to Earnings Growth Ratio (Forward PEG) is available in 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.
Earnings per Share (EPS) Revenue per Share (RPS) Price to Earnings Ratio (PE) Price to Earnings Growth Ratio (PEG) Forward Price to Earnings Ratio (Forward PE) Book Value per Share Price to Book Ratio (PB) Interest Debt per Share CAPEX per Share Dividend Yield Weighted Dividend Yield Price to Cash Flow Ratio (P/CF)

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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