A truncated expression for a P/E ratio that is based on forward (expected) earnings rather than on trailing earnings.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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