PE Ratio (Forward 1y)

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Definition


The Forward 1 Year Price to Earnings (PE) Ratio is similar to the price to earnings ratio. While a regular P/E ratio is a current stock price over it's earnings per share, a forward P/E ratio is a current stock's price over its "predicted" earnings per share for the next fiscal year. Forward P/E ratios less than the current P/E indicates expected increased earnings. Keep in mind, analyst estimates are not set in stone, and can often be wrong.

Forward PE Ratios can highlight some sentiment of a stock. If the forward P/E ratio is higher than the current P/E ratio, it indicates decreased expected earnings.

Formula

PE Ratio (Forward 1y) is calculated by current stock price over the predicted next fiscal year annual earnings.

For instance, if the stock price for Apple is 700 dollars and the predicted EPS was 70, the PE ratio Forward 1 yr would be 10.


Note : We do not display negative P/E ratios.

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