Forward P/E Ratio Template

Forward P/E Ratio Template

This forward P/E ratio template helps you find out the forward P/E ratio given the share price and earnings per share of stocks.

This is what the forward P/E ratio template looks like:

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The forward P/E ratio (or forward price-to-earnings ratio) divides the current share price of a company by the estimated future (“forward”) earnings per share (EPS)Earnings Per Share Formula (EPS)EPS is a financial ratio, which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time. The EPS formula indicates a company’s ability to produce net profits for common shareholders. of that company.  For valuation purposesValuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions, a forward P/E ratio is typically considered more relevant than a historical P/E ratio.

The formula to calculate the forward P/E ratio is the same as the regular P/E ratioPrice Earnings RatioThe Price Earnings Ratio (P/E Ratio is the relationship between a company’s stock price and earnings per share. It provides a better sense of the value of a company. formula, however, estimated (or forecasted) earnings per share are used instead of historical figures.

Forward P/E formula:

Forward P/E = Current Share Price / Estimated Future Earnings per Share

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