Measure the width and height of your stereo cabinet using a measuring tape. You will need this measurement when purchasing the pegboard. Pegboard is usually sold in 4-by-8-foot sheets that are larger than most stereo cabinets.
Set the pegboard across two sawhorses for measuring and cutting. Position the pegboard so that it does not bow in the middle.
Mark the width and height dimensions on the ends and sides of the pegboard using the measuring tape and a pencil. For example, if your cabinet is 3 feet tall and 6 feet wide, measure 3 feet in from each 4-foot end and six feet in from each 8-foot end.
Attach the hook end of the chalk line to either 3-foot mark on the pegboard. Pull the chalk-coated line to the other 3-foot mark and pull it tight over the pegboard surface.
Hold the chalk line firm on the mark with one hand and pull it up several inches with the other hand.
Release the raised chalk line. The line leaves a visibly straight line on the surface of the pegboard. Reel the chalk line back into its housing using the fold-out crank on the side.
Repeat Steps 4, 5 and 6 on the 6-foot marks.
Cut the pegboard along the chalk lines using an electric circular saw or a hand saw. Make sure the sawhorses are not in the path of the saw blade as you cut.
Position the pegboard in place at the rear of the cabinet. Mark the area where the power cords will exit.
Drill a 2-inch hole through the pegboard for the power cords using a drill fitted with a 2-inch-hole saw bit.
Attach the pegboard to the back of the stereo cabinet using 5/8-inch brad nails and a hammer.