leadingFY2PE: 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 following fiscal year (FY2 = Fiscal Year 2) 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

leadingFY2PE(currentShPr, FY2EPS)

Arguments

currentShPr	number.
FY2EPS	number.

Details

According to information provided by Jerald E. Pinto (2020), the method leadingFY2PE is developed for computing Leading PE Multiple based on the mean of the following fiscal year (FY2 = Fiscal Year 2) forecasts for the values passed to its two arguments. Here, currentShPr is the current Share Price and FY2EPS is the mean of following fiscal year (FY2 = Fiscal Year 2) forecasts by the analysts.

Value

Input values to two arguments currentShPr and FY2EPS.

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

leadingFY2PE(currentShPr=184.15,FY2EPS=18.35)

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