Forward Price to Earnings

Forward Price to Earnings

The price of a security per share at a given time divided by its projected earnings per share over the coming year. A forward P/E ratio is a way to help determine a security's stock valuation (that is, the fair value of a stock in a perfect market). It is also a measure of expected, but not realized, growth. See also: P/E, PEG.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Meanwhile, valuations in the Philippines remain attractive as the MSCI Philippines trades at a 12-month forward price to earnings (PE) ratio of 16.2 times, a discount of nine percent as compared with the five-year average.
"If you simply look at forward price to earnings, it would suggest the market is roughly fairly valued or maybe even a little bit expensive," State Street's Arone said.
Forward price to earnings multiples of 7.6 x compared to average regional multiple of 13.7x and dividend yield of 6.9 % compared to average regional yield of 3.6% presents a good opportunity for investors.
The former telecom sector traded at a forward price to earnings ratio of 10.6, nearly half of the 19.3 P/E of the new communications sector.
They have one year forward price to earnings multiples of 3x, 4.5x, and 4.9x, respectively.
Our rationale for this investment is grounded in Arak's attractive valuation, where the stock's Price to Sales ratio of 0.6 and Forward Price to Earnings (P/E) of 4.5 rank as the lowest in the sector.
"On a positive note, Maxis is currently trading at a forward price to earnings higher than the global median.
The US stock market, where the 12-month forward price to earnings (PE) ratio is the highest of all developed market regions and is now nearly two standard deviations above its historic 10-year average is at the centre of the pundits' concerns.
Shares have risen 28% in the last 12 months and now trade on a forward price to earnings of 22 times.
Shares of big sand producer US Silica Holdings, have jumped approximately three times as much Carbo, yet still trade at a lower valuation based on forward price to earnings.The use of ceramic proppants is most pronounced in the largest shale formations in the US, which are marked by deeper wells.The Bakken field in North Dakota, for instance, accounts for approximately 66 per cent of demand for ceramic proppants, says March Bianchi, an analyst at Cowen & Co, who sees that market expanding."If you look at the recovery rates, it pays for itself.
A forward price to earnings (P/E) ratio of 8.3 for a well-run, market-leading company is cheap, according to the broker, which considers that Atea deserves a valuation at least in line with the market average.
He cut his full year pre-tax profit forecast by pounds 2.7 million to pounds 84 million, putting the company on a forward price to earnings ratio of 11.