Bluetick1010

I doubt if its a co-incidence. (unless i am missing something)

Forward P/E ratio = Px Per Share / Earnings per share in next year

If earnings are expected to rise & Px Per Share is constant, P/E Ratio will decrease, compared to current one..


If Market Price - 10$ / share ; current earnings = 2$ / share ; expected earnings = 5$ / share

Forward P/E = 2 ; Trailing P/E = 5.

It'll work other way round for negative earnings i guess.