Forward Price to Earnings Ratio (Forward PE)

Calculate the forward price earnings ratio (forward P/E), a valuation ratio that compares the current stock price to the analyst consensus (average) EPS estimate for a future period, instead of the trailing EPS used by the regular P/E ratio.

The formula is as follows:

Forward P/E = Stock Price / Estimated EPS Average

Note that this requires an api_key to be set on the Toolkit and a Premium FMP subscription. Analyst estimates are fetched once per Toolkit instance and cached across calls to this (or the other forward-looking ratio) method - never on initialization or on any other ratio.

Also known as: forward P/E, projected P/E.

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Calculate the Forward Price to Earnings Ratio (Forward PE) in Python

The Forward Price to Earnings Ratio (Forward PE) is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_forward_price_earnings_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "MSFT"], api_key="FINANCIAL_MODELING_PREP_KEY")

toolkit.ratios.get_forward_price_earnings_ratio()

Which returns:

Parameters

get_forward_price_earnings_ratio accepts the following parameters:

• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.

Related Valuation Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.