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.  
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
REIT Financial Model Template
This REIT financial model template acts as a guideline for modeling a real estate investment trust (REIT). This model will…
Energy Industry Comps Template Energy Industry Comps Template
This energy industry comps template provides a guideline and example of what a comparables universe would look like for a…
Financial Institution Dividend Discount Model
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
See All