trailing P/E

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Trailing P/E

The price of a security per share at the present time divided by the trailing earnings per share over the previous year. It is the most commonly used form of the P/E ratio because it is based on actual, rather than projected, earnings. A trailing P/E ratio is thus the most accurate way to measure a security's valuation, that is, the fair value of a stock in a perfect market.

trailing P/E

The price-earnings ratio of a firm's common stock calculated as the current stock price divided by the previous year's earnings per share. Compare forward P/E.
References in periodicals archive ?
At the sectoral level, the BSE FMCG Index is trading at 31 times the 12-month trailing price to earnings multiples, while at 26 times, the healthcare and information technology indices are the next most valued.
With a trailing price to earnings ratio of 33 to 1, does McWilliams think all the good news is already priced in or are there new factors that will drive the price higher?
7 times its 12- months trailing price to earnings multiple.