Forward P/E

Forward P/E is the share price divided by the earnings analysts expect over the next twelve months. It is built on a forecast that the company resets every quarter with one sentence of guidance, which is why a beat can still send the stock down.

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In MochaLearnLearn how to read US earnings
  • Guidance (earnings guidance)Guidance is a company's own forecast for the next quarter or year, given with results. The quarter was priced weeks…
  • PEG ratioThe PEG ratio is P/E divided by expected annual earnings growth in percent, so a P/E of 30 with 30% growth gives a PEG…
  • Whisper numberThe whisper number is the unofficial earnings figure traders actually expect, usually above the published consensus…
  • Gross marginGross margin is revenue minus the direct cost of making the product, as a percent of revenue. It shows pricing power…
  • P/E ratioThe P/E ratio is share price divided by the last twelve months of earnings per share; 25 means $25 for each dollar of…
  • Blue chip US stocksBlue chip US stocks are large, long-established, profitable American companies like Apple, JPMorgan or Johnson &…

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