P/E using analysts' EXPECTED next-year earnings instead of the reported ones — cheaper-looking, but only as good as the forecasts inside it.
How to read it
Well below trailing P/E = analysts expect strong growth. If forward is HIGHER than trailing, expected earnings are shrinking.
Limits
Exactly as good as the estimates inside it — which are revised, and usually optimistic.
Related terms
See it on a ScorecardAll terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.