Forward looking ?

What is forward looking earnings ? What is its best value to use ?

I don’t understand your question…

Do you mean using E1?

I figure this was E1 - so forward-looking P/E ratio would be P0/E1 . . (I hope)

true. But which value of E1 to be used. Is it “expected” or is it “E0 x (expected growth rate” ?

I would think the former - would be cruel if the latter!

this seems quite a confusing q :

My guess will be E1

In valuation models we always use E1 and not E0, right ?

justified forward P/E uses E1, what’s more imporant is using the correct price…

(1-payout)(1+g)/r-g = P…

This is level 2 stuff.

expected forward earnings / current price