Leading or Trailing PE

only, remember, question, leading

They gave us D1, E1, Retention rate, .... and ask us to calculate to PE of the stock. The only think is that I don't remember at all if it was asked to calculate de trailing or leading PE !!!

I automatiquely did It thinking we had to calculate de leading PE and did : (D1/E1)/k-g

This question is killing me since june 6th ! :-)

trogulj

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2^#

发表于 2011-7-13 02:32 | 只看该作者

I think when they ask you P/E , it is always the leading PE if I am not mistaken..

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Ionutzakis

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发表于 2011-7-13 02:42 | 只看该作者

yeah...agree

D1 = Expected Div (projected based on D0 and the growth rate)
E1 = Expected Earning

trailing uses past numbers

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invic

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发表于 2011-7-13 02:51 | 只看该作者

Many thanks Aravinda and Findis07...

Ok, but the question seems to be so easy that after the exam I was asking me if I had really well read the question and if they maybe not asked us to calculate the trailing PE instead of leading PE.

I remember a world before PE, but don't remember if it was "trailing" or "leading"

Due to the fact that they gave us the ROE, we maybe had to find the trailing payout ratio (D-1/E-1) before dividing it by k-g ???

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jim8z3