The Forward Price-to-Earnings (P/E) Ratio Template is a useful tool for equity research analysts. The forward P/E ratio is given by the formula: Forward P/E = Current Share Price / Estimated Future Earnings Per Share (EPS) A forward P/E ratio is generally more relevant than a historical P/E ratio in valuation because it projects the expected future performance of the company, therefore provides a more accurate valuation metric. The estimated future earnings per share figures can be found in equity research reports, Bloomberg, Capital IQ, Yahoo Finance, or based on an analyst's own assumption. Normally, the preferred way to calculate the future EPS is using the analyst consensus, which is the average estimate of all equity research analysts submitted to IBES on Bloomberg or other data set. If you'd like to see more examples beyond this forward price-to-earnings (P/E) ratio template, be sure to check the CFI Marketplace.