Investor Glossary-forward peInvestor Glossary-forward peInvestor Glossary-forward peInvestor Glossary-forward peInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Forward PE

The HTML to link to this page
 

Forward PE means forward price-to-earnings ratio. Forward PE is also called estimated PE. Forward PE divides a stock's current price by its estimated future earnings per share. Forward PEs are calculated using consensus earnings estimates for the next four quarters. A forward PE evaluates the current stock price against what is expected to happen to earnings in the near future. If the forward PE shows earnings estimates are higher for next year, a stock whose current price seems high relative to last year's earnings may seem more reasonably priced. Forward PE is often used to compare a company's current earnings to its estimated future earnings. Forward PE will be lower than current PE if earnings are expected to grow in the future. Forward PE will be higher than current PE if earnings are expected to slow in the future.



Rate this forward PE definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: cancelled check, stock split, ex-dividend, class C shares, balance sheet, dividends payable, deferred tax, 401a, average price per share, stock market close, VIX, current ratio, open position, EBITDA, debt service coverage, irrevocable trust, risk management, required rate of return, retained earnings, inflation, covered put, FICO score, diluted share, APR, quality assurance, 144a, in escrow, wholly-owned subsidiary, ex-dividend date, reverse mortgage, labor relations, 1035 exchange, deferred revenue, Key Rate Duration, Zero Cost Collar, 1031 exchange, option premium, phantom income, LIBOR, command economy, limit order, FTSE, minority interest, margin rate, annual return, implied volatility, real GDP, liquidity ratio, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use