justified trailing P/E leading, price, should, current

former

justified trailing P/E : is it P0/E0, where P0 is current stock price, E0 is last year end earnings?

if it is justified leading P/E , what is the timming of P and E we should use? Thank.s

bingbingliang

I think leading P/E is P0/E1 which is next years expected earnings. And trailing P/E is P0/E0 which is the beginning of the years earnings.

ayodayo

when we could add " justified" to it?
Reggie Wrote:
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> I think leading P/E is P0/E1 which is next years
> expected earnings. And trailing P/E is P0/E0 which
> is the beginning of the years earnings.

wxs1986

Not too sure man, I thought it's always said "justified" and I've never seen a question about whether its "justified" or "unjustified". Do you have a specified question from somewhere?

Sportsman

current price over current EPS

also use [ d0(1+g)/E0 ] / r - g

5566

which is the same as: (1-b)(1+g) / (r-g)

mp3bu

Justified Trailing P/E = [payout ratio x (1+g)]/r - g

Justified Leading P/E = payout ratio/r - g

wxs1986

The reason why it's called justfied is that it's derived from the intrinsic value analysts calculated. you can also think of it as "implied" si tu veux.