Trailing P/E Ratio

The trailing P/E ratio is a company's share price divided by its earnings per share over the past 12 months (or the last financial year). Because it uses reported results, it is based on facts rather than forecasts. It is one version of the price-to-earnings ratio (P/E), which is explained in full, with a worked example, on that page.

Its counterpart, the forward P/E ratio, uses expected earnings for the coming year instead. Fund fact sheets often show the trailing P/E of a portfolio's holdings.