Let say that I know the EPS for fiscal year of 2010 that ended on 12/31/10, if I were to calculate the PE ratio, should I use the stock price on 12/31 or of today?
| +135 | UBS Accused of Favoring H-1B Workers While Cutting U.S.-Born Employees | 24 | 5h |
| +90 | Incompetent and annoying co-intern | 23 | 1d |
| +70 | Getting Laid in IB? | 29 | 33m |
| +67 | Intern keeps sleeping at work - what to tell them | 28 | 1d |
| +56 | Living in greenwich as an analyst? | 12 | 1d |
| +47 | UBS Promotion or Lateral to Boutique? | 9 | 8h |
| +42 | NYC Associate Budget | 14 | 1d |
| +39 | PJT M&A Group Selection 2026 | 5 | 9h |
| +36 | Nauseous every morning for past 3 years in IB, anyone else? | 21 | 2d |
| +36 | Quick Thoughts on CVC AI Sale Process | 7 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
historical PE should be based on the historical price. otherwise you're just assuming that the company will hit that EPS in 2011. if that is your assumption, fine. if not, you should look up a projected consensus # or come up with your own and figure out a forward PE
Thanks. so I should use the stock price on 12/31/10, right?
No, you use current price. PE: Current price / most recent full year EPS. Forward PE: Current Price / EPS estimate of future
thank you
Voluptatem odio voluptas omnis eveniet culpa quisquam est. Non iure est quaerat aut. Expedita quo nemo et sint culpa ratione excepturi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...