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 ?
The trailing price-to-earnings ratio of the index is at 22.
Such colossal valuations helped inflate the SPDR S&P Biotech Exchange Traded Fund (ETF) trailing price-to-earnings ratio to 33-1 and fueled the sector's impressively strong start to 2014.
Its stock is up 62 percent year-to-date and has a trailing price-to-earnings ratio of 15.
At first glance the trailing price-to-earnings ratio may seem pricey, but given the continued growth of the company, we believe investors will have to pay a premium for a premium tech leader.
Analysts also believe that investors would tend to compare Damac to Emr Properties, whose stock is up 62 per cent year-to-date and has a trailing price-to-earnings ratio of 15.