Investor Glossary-trailing peInvestor Glossary-trailing peInvestor Glossary-trailing peInvestor Glossary-trailing 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

Trailing PE

The HTML to link to this page
 

A trailing PE is a price-earnings ratio based on the most recent 12 months' results. U.S. companies report quarterly, so a trailing PE is computed based on the most recent four quarters. For example, if the stock price is 20, and quarterly earnings were $.50, $.30, $.90, and $.30 - or $2.00 total - the trailing PE is 20/2, or 10. A trailing PE is used instead of fiscal-year earnings because a trailing PE is more current. For example, if the date is December 30, 2XX2, the most recent fiscal-year earnings are likely for the year ended December 31, 2XX1 - nearly one year ago. Notably, the trailing PE is used in stock tables, like those in the Wall Street Journal. But a trailing PE is still an historical number that reflects past performance. In addition to the trailing PE, investors will ordinarily look at prospective (or "forward") PEs as well, which are based on analyst estimates of future earnings.



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


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
©2004-2015 Investor Glossary - All rights reserved - Terms of Use