alleryStart learning →Forward P/E divides price by which earnings amount?
ALast year's actual profit
BNext year's estimated profit
CBook value of equity
DAverage of past profits
Answer & Solution
Correct answer: B. Next year's estimated profit
Forward P/E relies on analysts' estimated net earnings for the coming year.
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Related questions
P/E can also be found by market capitalization divided by:As a ratio of a stock to a flow, the P/E ratio has the units of:Trailing P/E uses earnings from which period?A company earns an EPS of Rs 12.50 and trades at Rs 150. Its P/E ratio is:A share trades at $24 and its EPS is $3. Its P/E ratio is:The P/E ratio compares a company's share price with its:Adjusted price charts divide pre-split closing prices by:Which split ratio is among the most common?