Forward Price To Earnings - Forward P/E

Forward Price To Earnings - Forward P/E

A measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used is just an estimate and therefore is not as reliable as current earnings data, there is still benefit in estimated P/E analysis.

Also referred to as "Estimated Price to Earnings."

Notes:

The estimated P/E of a company is often used to compare current earnings to estimated future earnings. If earnings are expected to grow in the future than the estimated P/E will be lower then the current P/E. This measure is also used to compare one company to another with a forward-looking focus.

See also: Earnings, Earnings Estimate, Price-Earnings Ratio - P/E Ratio