The Price To Earnings Ratio - Trailing PE vs Forward PE Ratios

This video tutorial explains how to calculate the price to earnings (P/E) ratio - specifically the trailing PE and forward PE ratios.

Return on Investment:

The Dividend Yield:

Dividends - Payout Ratio Vs Retention Ratio:

Market Capitalization:

Price to Earnings (P/E) Ratio and Earnings Per Share (EPS):

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PEG Ratio Vs Price To Earnings Ratio:

Price to Sales (P/S) Ratio:

Price to Book (P/B) Ratio:

Currency Exchange Rate:

Profit Margin & Operating Margin:

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Return on Assets (ROA) and Return on Equity (ROE):

Debt to Equity Ratio:

Liquidity Ratios:

Assets, Liabilities, & Equity:

The Short Ratio:

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Math and Science Videos:

[butter]

It never ceases to amaze me how relevant this channel has been for me for the past 2 years. I'm studying both science and business in uni and a lot of the content on this channel is better explained than in my lectures.

[kingtigercrownestate]

The problem with forward P/E is that the stock price and the expected earnings are both likely due to change a lot going into the future especially by a lot of months but that is why it says "estimated".

[heronsamuel]

how does this guy know everything about every topic

[markg]

Where did you get $5 for the EPS in the beginning of the video.

[videogamearchives]

I'm starting to learn about investing and right now I'm trying to learn more about P/E ratios, more specifically trailing and forward P/E ratios. I wanted some clarification for my confusion with P/E ratios. When people talk about P/E, or when websites like Google display P/E ratio data, are they generally referring to the trailing P/E of companies since the 4 quarters have already been completed and an accurate P/E ratio is available for those companies? Or is there a "current P/E" ratio where they use the EPS available from the quarters of the year already completed? And if so is this "current P/E" ratio the one people generally refer to when they talk about P/E ratios of companies?

Thanks for any and all help!

[jasonjunior]

Estimated EPS value, how do you get that

[danielgbat]

That doesn´t make sens to me, since you are using estimated EPS but not estimated Price.. so actual price but future EPS?

[jimbokraut]

expected much more from this video, sorry
this is just a technical explanation of the formula
more importantly, I wish you had shed light on how trailing and forward pe's are used in stock valuation for buying or selling