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.
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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 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.
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 15.9 times against 14.3 times for the wider bourse.