Equity Valuation

Forward Price-to-Earnings Ratio

Definition

What is Forward Price-to-Earnings Ratio?

Example in practice

A ₦120 share with expected ₦15 EPS trades at eight times forward earnings.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

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