Forward P/E

Instead of trailing earnings, the forward P/E uses analysts' estimated earnings for the next period. Example: Price $100, estimated EPS $8 → forward P/E = 12.5. If strong growth is expected, forward P/E is often much lower than trailing P/E. Watch out: It relies on estimates — those can be wrong. If the company disappoints, the forward number was too optimistic. Use it as a complement, not a replacement for trailing P/E.