top of page

Financial Encyclopedia

Forward P/E


Forecast P/E  - a ratio that reflects the ratio of the company's market capitalization to its forecasted profit for the period.


In order to draw a more accurate conclusion when using the forecast P/E, it should be considered together with historical P/E.
For example, if the forecast P/E is below the current P/E ratio, then the company's earnings are expected to rise in the future.

More detailed

Forecast P/E = Current share price / Future earnings per share

Forecast P / E is calculated using analyst forecasts or using financial models.
It is believed that using the Forecast P/E helps identify undervalued companies more effectively than using the standard P/E ratio.
However, the profit used in the formula is only an estimate and may not be as reliable as current and historical profit data.

LCC “Ranks”

Aghasi Khanjyan street, 50, Yerevan, Armenia, 0025



Marr street, 16, apt. 5, Yerevan, Armenia, 0079
Prefix LLC




Mask group.png

Cyprus office:
Loutrakiou, 5, CHARA VENEZIA BUILDING, 1st floor, Office 101, Nicosia, Cyprus, 2027
Zolotukhin & Partners corporation LTD

LLC "Ranks AAA" does not provide brokerage services and does not take funds into trust management.
Legal Entity Code:53125283 Insurer code: 43715106 registered in  Ministry of Justice Republic of Armenia. 

© «RANKS» 2022. All rights reserved

Privacy Policy

Terms of Use

bottom of page