It is only for the P/E that i can see the distinction. For the rest of the ratios, should we assume it is “leading” given we are doing forecasts ?
From my understanding
justified P/B : (ROE-g)/(r-g), no need to know if it is trailing or leading
justified P/S : (E0/S)*((1-b)(1+g)/(r-g)) <= this one is based on trailing as wou want to net the E0 out
justified P/E : simply the trailing PE (not sure about this one in fact )
P/B is leading.
Except that it’s trailing.
I wrote an article about justified ratios that may be of some help here: http://financialexamhelp123.com/justified-ratios-price-multiples/
Only leading P/E is leading; all others are trailing.
I thought that P/B = (ROE (1-b)) / (Ke - g) = ROE * leading P/E
Wouldn’t it make P/B a leading ratio?
Ah no, i just read your explanation, E1 = B0 * ROE, hence P0/B0 is indeed a trailing ratio. My bad.