Equity Valuation

Trailing Price-to-Earnings Ratio

Definition

What is Trailing Price-to-Earnings Ratio?

Price-to-earnings ratio based on historical earnings, commonly the last twelve months.

Example in practice

The trailing P/E uses reported rather than forecast profit.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

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