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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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