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What are the types of P/E?

Generally, there are two types of P/E ratios which are mentioned below: Forward P/E - It is a forward-looking indicator, also called estimated price to earnings. It shows what the future earnings look like. Trailing P/E - It is based on the past performance of the company. It is widely accepted by analysts as its earnings have already been reported, and there's no need to trust the estimated earnings report of anyone.

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What is the Price-to-Earnings (P/E) ratio? What is Earnings Per Share (EPS)?

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