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:
Download the Free Template
Enter your name and email in the form below and download the free template now!
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)The Earnings Per Share formula is a financial ratio, which counts net earnings against the total outstanding shares over a fixed period of time. A higher EPS ratio indicates a company’s ability to generate 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. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance, 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 gives investors a better sense of the value of a company. The P/E shows the expectations of the market and is the price you must pay per unit of current (or future) earnings 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
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.
- Excel Modeling TemplatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates
- PowerPoint Presentation TemplatesPresentationsDownload free PowerPoint (ppt) templates for making world-class corporate presentations. Templates for investment banking, corporate development, strategy and other areas of finance. Get an Investor Relations (IR) presentation, and investment banking pitchbook template, and more PowerPoint examples to advance your
- Transaction Document TemplatesTransactionsDownload free transaction templates including a Letter of Intent (LOI), Term Sheet, Non-Disclosure Agreement (NDA), Confidential Information Memorandum (CIM), Equity Capital Markets (ECM) memo, Due Diligence checklist, and other types of corporate transactions. Download the Word Document files for your own use
