DEFINITION of 'Forward Price To Earnings  Forward P/E'
A measure of the pricetoearnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next fullyear fiscal period.
Also referred to as "estimated price to earnings".
INVESTOPEDIA EXPLAINS 'Forward Price To Earnings  Forward P/E'
The estimated P/E of a company is often used to compare current earnings to estimated future earnings. If earnings are expected to grow in the future, the estimated P/E will be lower than the current P/E. This measure is also used to compare one company to another with a forwardlooking focus.
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RELATED FAQS

How can I calculate the forward p/e of the S&P 500?
Forward pricetoearnings, or P/E, for the S&P 500 is calculated by dividing the market share per price by the forecasted ... Read Full Answer >> 
What is an alternative ratio to forward p/e?
A metric that is an alternative to the forward price to earnings (P/E) ratio is the standard, or trailing, P/E ratio. This ... Read Full Answer >> 
What does the forward p/e indicate about a company?
The price to earnings (P/E) ratio compares the share price of a company to the earnings it generates per share. The formula ... Read Full Answer >> 
What is the difference between forward p/e and trailing p/e?
The forward P/E calculates the pricetoearnings ratio that uses projected future earnings. The trailing P/E, which is the ... Read Full Answer >> 
How can I calculate the operating cash flow ratio on Excel?
The operating cash flow ratio measures a company's shortterm liquidity by relating its operational cash flow to its current ... Read Full Answer >> 
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