trailing P/E

(redirected from Trailing Price to Earnings Ratio)

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 ?
Although the DSM Index is trading at a trailing price to earnings ratio of 15X (higher than the GCC and EM), the high dividend payout (3.