B
Glossary
Forward P/E Ratio
Also: Fwd P/E
Important — standard screening
What it measures
P/E using next year's expected profit. Lower than the normal P/E means profits are expected to grow.
Formula
Share Price ÷ next-year expected EPSBenchmark
Usually < trailing P/E if growth expected
Related metrics
Source
Damodaran, Investment Valuation (2012), ch. 18