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
The price-earnings ratio of a firm's common stock calculated as the current stock price divided by estimated earnings per share for the coming year. Compare trailing 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.