Price Multiples

With regards to trailing and leading price multiples (not justified), how does this relate to future stock price?

For example, current P/E is 12. Trailing P/E is 8 and leading P/E is 14.

as in is there anything we can infer from this other than the fact that earnings are declining?

Sell or short the stock. P/E getting worse. You use P/E when you’re comparing stocks in an industry. When P/E is higher than the industry it’s overvalue. If the P/E falls back down to the industry average assuming 8 (like the trailing P/E), the the price of the stock would fall 40ish percent.