Forward Price-To-Earnings Ratio

Business / Taxes / Forward Price-To-Earnings Ratio: Stock analysts calculate a forward price-to-earnings ratio, or forward P/E, by dividing a stock's current price by estimated future earnings per share. Some forward P/Es are calculated based on estimated earnings for the next four quarters. Others use actual earnings from the past two quarters with estimated earnings for the next two. A forward P/E may help you evaluate the current price of a stock in relation to what you can reasonably expect to happen in the near future. In contrast, a trailing P/E is based exclusively on past performance. For example, a stock whose price seems high in relation to the last year's earnings may seem more reasonably priced if earnings estimates are higher for the next year. On the other hand, the expectation of lower future earnings may make the current price higher than you are willing to pay.

Other Words for Forward

Forward Adverb Synonyms: advance, further, promote, back, foster, support, aid, assist, help, patronize, encourage, nourish, nurse along
Forward Noun Synonyms: advance, leading, foremost, front, head, first
Forward Adjective Synonyms: (well-)advanced, (well-)developed, progressive, precocious, forward-looking
Forward Verb Synonyms: speed (up), accelerate, advance, hasten, expedite, hurry, quicken, step up
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Other Words for Ratio

Ratio Adverb Synonyms: proportion, relationship, correlation, correspondence
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Operationally Efficient Market

Business / Finance / Operationally Efficient Market: Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an internally efficient market. MORE

Operations Director

Health / Health Insurance / Operations Director: Individual who typically oversees claims, management information services, enrollment, underwriting, member services, and office management. MORE

Operational Integration

Health / Health Insurance / Operational Integration: The consolidation into a single operation of operations that were previously carried out separately by different providers. MORE

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