Differences Between Forward P/E And Trailing P/E

If an investor is asked to identify the most popular stock market metric, other than price, price to earnings ratio (P/E) would most likely pass his lips. Not only is the P/E ratio the best-known indicator of an equity’s true value, but it’s also remarkably easy to calculate.

To determine the P/E value, one simply must divide the current stock price by the earnings per share (EPS). The current stock price (P), can be…