The Trailing Multiples or the Forward Multiple? which one is the best? Why? What are the benefits...

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Finance

The Trailing Multiples or the Forward Multiple? which one is thebest? Why?
What are the benefits of using the Earnings Multiple Method todetermine the value of a target company?
Where should the analyst exercise caution when using theEarnings Multiple Method?
Should the results of the Earnings Multiple Method be used asthe final determination of the value of the target company? Why? Orwhy not?

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Question The Trailing Multiples or Forward Multiple Which one is the best Why Sol Let us first understand Trailing Multiples and Forward Multiples Trailing Multiple Trailing multiple is defined as the ratio of Price per share to the Earnings per share over the past 12 months Trailing Multiple or Trailing PE ratio Price per share Earnings per share over the past 12 months Forward Multiple Forward multiple is defined See Answer

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