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What Is the Difference Between the P/E Ratio and the Forward

Question 8

Multiple Choice

What is the difference between the P/E ratio and the forward P/E ratio?


A) The P/E ratio uses the current share price while the forward P/E ratio uses the future share price.
B) The P/E ratio uses the current earnings per share while the forward P/E ratio uses the expected earnings per share.
C) The P/E ratio uses both the current price and earnings, while the forward P/E ratio uses both the future price and earnings.
D) The P/E ratio uses EPS while the forward P/E ratio uses net income.

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