trailing P/E

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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The volatility has shrunk trailing price-to-earnings valuations by 6 percent since the Russell 2000 hit a record high in January, Krishna added, leaving small caps both cheaper and less risky at a time when companies are growing their pre-tax earnings by an average of 14 percent year-on-year.
Edita's offering price trailing earnings multiple was not cheap at almost 24 times and among one of the higher priced issues this year as well as compared to the trailing price-to-earnings multiple of the EGX30 Index of only 13x at the time of listing.
The trailing price-to-earnings ratio of the index is at 22.7, which is 40 per cent more than its long-term average of 16.2.
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 15.9 times against 14.3 times for the wider bourse.
Most Middle East indices have trailing price-to-earnings ratios of around 10-12, with UAE at a tempting 9.69 and stalwart Qatar at 11.67.