Trailing Price-To-Earnings - Trailing P/E
- Trailing Price-To-Earnings - Trailing P/E
- The sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months. This measure differs from forward P/E, which uses earnings estimates for the next four quarters.
The trailing P/E ratio is calculated as follows:
Trailing P/E)" />
This is the most commonly used P/E measure because it is based on actual earnings and, therefore, is the most accurate. However, stock prices are constantly moving while earnings remain fixed. As a result, forward P/E can sometimes be more relevant to investors when evaluating a company.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Trailing — The most recent time period, often used to describe the time that a particular set of data is referring to. Trailing is used to describe a past statistic, such as same store sales, but can also be used to describe a technique, such as a trailing… … Investment dictionary
trailing earnings — Past earnings. Often used in the context of the price earnings ratio. This ratio is usually distinguished as price to trailing earnings (today s price divided by the most recent 12 months of earnings) versus price to prospective earnings (today s … Financial and business terms
price-earnings ratio — Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio are determined by dividing earnings for past 12… … Financial and business terms
Price-Earnings Ratio - P/E Ratio — A valuation ratio of a company s current share price compared to its per share earnings. Calculated as: Market Value per Share Earnings per Share (EPS) For example, if a company is currently trading at $43 a share and earnings over the last 12… … Investment dictionary
Trailing Twelve Months - TTM — The timeframe of the past 12 months used for reporting financial figures. A company s trailing 12 months is a representation of its financial performance for a 12 month period, but typically not at its fiscal year end. Since quarterly reports… … Investment dictionary
P/E ratio — Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25. 50 = 10 times $2. 55 XYZ stock sells for 10 times earnings. P/E = Current stock price divided by trailing annual earnings per share or expected annual… … Financial and business terms
P/E ratio — The P/E ratio (price to earnings ratio) of a stock (also called its earnings multiple, or simply multiple, P/E, or PE ) is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. [cite web|url … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
Business valuation — is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a… … Wikipedia
Tiger Woods — Personal information … Wikipedia
