B
Glossary
Forward P/E Ratio
Also: Fwd P/E
Important — standard screening
What it measures
Same as P/E but using expected future earnings. Lower than trailing = market expects earnings to grow.
Formula
Market Cap / Next-Year Est. Net IncomeBenchmark
Usually < trailing P/E if growth expected
Related metrics
Source
Damodaran, Investment Valuation (2012), ch. 18