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Forward looking multiple

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Definition of Forward looking multiple

Forward Looking Multiple Image 1

Forward looking multiple

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



Related Terms:

Feedforward

The process of determining prospectively whether strategies are likely to achieve the target
results that are consistent with organizational goals.


Forward buying

The purchase of items exceeding the quantity levels indicated
by current manufacturing requirements.


Forward contract

A cash market transaction in which delivery of the commodity is deferred until after the
contract has been made. It is not standardized and is not traded on organized exchanges. Although the
delivery is made in the future, the price is determined at the initial trade date.


forward contract

Agreement to buy or sell an asset in the future at an agreed price.


Forward cover

Purchase or sale of forward foreign currency in order to offset a known future cash flow.



Forward delivery

A transaction in which the settlement will occur on a specified date in the future at a price
agreed upon on the trade date.


Forward differential

Annualized percentage difference between spot and forward rates.


Forward Looking Multiple Image 2

Forward discount

A currency trades at a forward discount when its forward price is lower than its spot price.


Forward Exchange Market

A market in which foreign exchange can be bought or sold for delivery (and payment) at some specified future date but at a price agreed upon now.


Forward exchange rate

Exchange rate fixed today for exchanging currency at some future date.


Forward Fed funds

Fed funds traded for future delivery.


Forward forward contract

In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to
at a fixed price for future delivery.


Forward interest rate

Interest rate fixed today on a loan to be made at some future date.


Forward market

A market in which participants agree to trade some commodity, security, or foreign
exchange at a fixed price for future delivery.


Forward premium

A currency trades at a forward premium when its forward price is higher than its spot price.


Forward rate

A projection of future interest rates calculated from either the spot rates or the yield curve.


Forward Looking Multiple Image 3

Forward rate

The future interest rate of a bond inferred from the term
structure, especially from the yield curve of zero-coupon bonds, calculated from
the growth factor of an investment in a zero held until maturity.


Forward rate agreement (FRA)

Agreement to borrow or lend at a specified future date at an interest rate
that is fixed today.



forward rate of exchange

Exchange rate for a forward transaction.


Forward sale

A method for hedging price risk which involves an agreement between a lender and an investor
to sell particular kinds of loans at a specified price and future time.


Forward trade

A transaction in which the settlement will occur on a specified date in the future at a price
agreed upon the trade date.


Futures contract multiple

A constant, set by an exchange, which when multiplied by the futures price gives
the dollar value of a stock index futures contract.


Loss carryforward

The offsetting of a current year loss against the reported taxable
income for future years.


Multiple Deposit Creation

The process whereby the money multiplier operates.


Multiple-discriminant analysis (MDA)

Statistical technique for distinguishing between two groups on the
basis of their observed characteristics.


Multiple-issuer pools

Under the GNMA-II program, pools formed through the aggregation of individual
issuers' loan packages.


Multiple Lives

Two or more death benefits based on one definition with different insureds.


Multiple rates of return

More than one rate of return from the same project that make the net present value
of the project equal to zero. This situation arises when the IRR method is used for a project in which negative
cash flows follow positive cash flows. For each sign change in the cash flows, there is a rate of return.



Multiple regression

The estimated relationship between a dependent variable and more than one explanatory variable.


multiple regression

a statistical technique that uses two or
more independent variables to predict a dependent variable


Multiples

Another name for price/earnings ratios.


Options contract multiple

A constant, set at $100, which when multiplied by the cash index value gives the
dollar value of the stock index underlying an option. That is, dollar value of the underlying stock index = cash
index value x $100 (the options contract multiple).


P/E ratio (PE ratio / multiple)

Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25. 50 = 10
times $2. 55
XYZ stock sells for 10 times earnings. P/E = Current stock price divided by trailing annual earnings per
share or expected annual earnings per share.


price-earnings (P/E) multiple (ratio)

Ratio of stock price to earnings per share.


Range forward

A forward exchange rate contract that places upper and lower bounds on the cost of foreign exchange.



 

 

 

 

 

 

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