leadingFY1PE: Calculates Leading Price to Earning Multiple based on the...

In stockAnalyst: Equity Valuation using Methods of Fundamental Analysis

Calculates Leading Price to Earning Multiple based on the mean of the current fiscal year (FY1 = Fiscal Year 1) forecasts.

Description

Applying the fiscal-year concept, Leading PE can be computed in two ways: first, based on the mean of the current fiscal year (FY1 = Fiscal Year 1) forecasts, for which analysts may have actual EPS in hand for some quarters; second, based on the following fiscal year (FY2 = Fiscal Year 2) forecasts, which must be based entirely on forecasts by analysts (Jerald E. Pinto, 2020).

Usage

leadingFY1PE(currentShPr, FY1EPS)

Arguments

currentShPr	number.
FY1EPS	number.

Details

According to information provided by Jerald E. Pinto (2020), the method leadingFY1PE is developed for computing Leading PE Multiple based on the mean of the current fiscal year (FY1) for the values passed to its two arguments. Here, currentShPr is the current Share Price and FY1EPS is the mean of the current fiscal year (FY1 = Fiscal Year 1) forecasts, for which analysts may have actual EPS in hand for some quarters.

Value

Input values to two arguments currentShPr and FY1EPS.

Author(s)

MaheshP Kumar, [e-mail]

References

Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194

Examples

leadingFY1PE(currentShPr=184.15,FY1EPS=16.19)

stockAnalyst documentation built on Sept. 13, 2022, 5:07 p.m.