Forward P/E Ratio
Forward price-to-earnings ratio is a valuation metric that uses forecasted earnings per share (EPS) for the next 12 months to compute a price-to-earnings (P/E) multiple.
Example: If a stock trades at $180 and analysts forecast $10 in forward EPS for the next year, the forward P/E ratio would be 18x (180 ÷ 10).
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