Trailing earnings

Trailing earnings
Past earnings. Often used in the context of the price earnings ratio.

Right now the trailing earnings P/E ratios on the S&P 500 at 16.3 and on the DOW Jones Industrial Average at 14.2, are neither abnormally high, nor abnormally low.

Once the major write-offs are no longer part of the four quarter trailing earnings, the annual earnings return to a forecasted $46.36 for the S&P 500. In addition, Standard & Poor's has raised their forecast for earnings for 2010 from $45.

A truncated expression for a P/E ratio that is based on forward (expected)
earnings rather than on trailing earnings.
Forward premium
A currency trades at a forward premium when its forward price is higher than its spot price.

This ratio is usually distinguished as price to trailing earnings (today's price divided by the most recent 12 months of earnings) versus price to prospective earnings (today's price divided by consensus forecast earnings for the next 12 months).

Price to Projected EPS
Analyst forecasts used in the context of a P/E ratio based on forward (expected) earnings rather than on the trailing earnings.

Forward-looking multiple
A truncated expression for a P/E ratio that is based on forward (expected) earnings rather than on trailing earnings.

in those industries enjoying a surge of popularity (e.g.: telecommunications, biotechnology) tend to have high P/E ratios, reflecting a growth orientation. (P/Es can also be artificially inflated if a company has very weak trailing earnings, ...

See also: Forward contract, Trade Date, Saving, Yield curve, Banks