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Forward P/E - Price to Earnings

Price/earnings ratio, using earnings estimates for the next four quarters. A forward PE evaluates the current stock price against what is expected to happen to earnings in the near future.

It is calculated by dividing "Market Price per Share" by "Expected Earnings per Share". Forward P/E will be lower than current P/E if earnings are expected to grow in the future. If earnings are expected to slow in the future, Forward P/E will be higher than current P/E.

Also referred to as "estimated price to earnings"

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