How to calculate Projected Earning Growth (PEG):

It differs for every bank.. the rate of growth is not constant for any sector....... Let me give you an example :

How to calculate Projected Earning Growth (PEG):
if Bank X has last half yearly EPS of Tk. 20 and you are projecting this years half yearly of Tk. 30 then.. projected growth rate will 30-20 = 10 [out of last years 20] i.e. 50%... suppose that banks X's current PE ratio is 12.

Now we want to calculate the PEG
PEG = PE ration of Bank X / growth
= 12 / 50
= 0.24

So, here Bank X's PEG = 0.24

You can calculate Projected Earning Growth for Q1 to Q1, Half year to half year, yearly to yearly.

Best way is to calculate the Yearly to yearly EPS Growth

More than 1.25 = Overvalued

0.51 to 1.25 = Richly Valued

0.26 to 0.50 = Fairly Valued

Less than 0.25 = Undervalued