Equity Valuation
Forward Price-to-Earnings Ratio
Definition
What is Forward Price-to-Earnings Ratio?
Share priceThe market price at which one share is quoted or traded. divided by forecast earnings per shareNet income attributable to ordinary shareholders divided by weighted average ordinary shares..
Example in practice
How This Looks in Practice
A ₦120 share with expected ₦15 EPS trades at eight times forward earnings.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.