Forward P/E Ratio.

The forward price-to-earnings ratio divides a stock's current share price by the consensus analyst estimate for next twelve months' earnings per share. It gives investors a valuation based on expected future profits rather than reported past results. A forward P/E below the trailing P/E suggests analysts expect earnings growth; one above it suggests expected profit compression. Because estimates can be wrong, forward P/E should be read alongside revenue trends and margins, not in isolation.