Series 79: Trailing And Forward P/E Ratio

Trailing and Forward P/E Ratio

A price/earnings ratio may be calculated based on either actual historical data or projected future earnings. When the data used is historical, the ratio is referred to as trailing P/E. In most cases, the data is from the previous 12-month period, in which case it is called LTM P/E or TTM P/E. (LTM stands for “last 12 months”; TTM is an abbrevia