price to earnings

What does a forward P/E mean?

A fundamental analyst may use the forward P/E (forward price to earnings )to calculate the value of a stock. This ratio is similar to the P/E (price to earnings) ratio but it uses the projected estimated future earning of the company. Formula The P/E ratio looks to see how expensive a stock is and how much stock investors are willing to pay for each dollar of earnings. A forward P/E does the same thing except it looks at how expensive …

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