Forward P/E: what it is and how to read it
The P/E calculated with the earnings analysts expect for the next 12 months instead of the last 12. It looks forward: it tells you how much you pay for the expected profit.
How it is calculated
Forward P/E = share price / expected earnings per share for the next 12 months.
How to read it
If the forward P/E is lower than the current P/E, analysts expect earnings to rise; if it is higher, to fall. The gap between the two tells you more than either one alone.
Forward P/E in the MeridIAn ranking
Among the 2,037 companies in the ranking with data, the median Forward P/E is 14.9: half are below and half above. The lowest 25% are below 10.9 and the highest 25% above 21.4.
For example: NVIDIA, 14.7; Apple, 35.5; Alphabet, 23.1; Banco Santander, 9.6.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 13.4 | 135 |
| Communication Services | 12.3 | 93 |
| Consumer Cyclical | 13.4 | 225 |
| Consumer Defensive | 14.4 | 123 |
| Energy | 12.2 | 100 |
| Financial Services | 11.6 | 338 |
| Healthcare | 17.7 | 182 |
| Industrials | 17.3 | 380 |
| Real Estate | 23.2 | 97 |
| Technology | 20.5 | 272 |
| Utilities | 15.6 | 90 |
Lowest Forward P/E
What to watch out for
It relies on forecasts, and forecasts miss, especially for cyclical companies or at turning points. Use it alongside the regular P/E, not instead of it.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.