Q: Good morning 5i.
I would appreciate 5i's comments on Forward P/E ratios published in major reporting entities like Globe Investor.
Are these based on consensus analyst projections of forward earnings? Do the forward earnings forecasts exclude large non-recurring transactions (that could flip a 'real' 22 Forward P/E projection into a more attractive looking 11?
In summary, what advice would 5i have on the above, and how much should one take an "attractive looking" forward P/E into consideration when thinking about a stock?
Thank you.
I would appreciate 5i's comments on Forward P/E ratios published in major reporting entities like Globe Investor.
Are these based on consensus analyst projections of forward earnings? Do the forward earnings forecasts exclude large non-recurring transactions (that could flip a 'real' 22 Forward P/E projection into a more attractive looking 11?
In summary, what advice would 5i have on the above, and how much should one take an "attractive looking" forward P/E into consideration when thinking about a stock?
Thank you.
5i Research Answer:
Most entities (but not all) use foward adjusted earnings for P/E estimates. These will typically...