Forward Price to Earnings

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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.
References in periodicals archive ?
"The anticipated subsidy cuts and tax increases, combined with an expectation of further currency devaluation/depreciation, will keep inflation high during the next 12 months." Elsewhere, Dubai's index pulled back 0.5 percent; the index has now fallen 7.7 percent from its late April peak, bringing its forward price to earnings ratio to about 8.2 times, the lowest in the Gulf, according to Thomson Reuters data.
Forward price to earnings ratio of the market re- treated to 5.7 by end of April after topping 6 in the middle of the month for the first time in a year.
As a result, although the stocks are trading at low valuations, (forward price to earnings ratio is below 5) it's expected that such sec- tors underperform relative to other sectors even in the case of sanctions relief.