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Forward Price to Earnings

By Glossary

The Forward P/E Ratio is simply a stock’s share price divided by future analyst projections of the company’s earnings. While analyst projections can be fairly accurate, they are also subject to bias and could vary greatly from actuality.

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Price to Earnings Ratio

By Glossary

The P/E Ratio is simply a stock’s share price divided by the company’s earnings. A high P/E ratio indicates that a company could be overvalued by investors, while a low P/E ratio indicates that a company could be undervalued by investors.

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End of Quarter Window Dressing

By Glossary

Asset managers often increase holdings in successful stocks right before the end of the fiscal quarter to make it appear as though their positions did better than in actuality. Holding shares of a company near the end of the quarter gives the appearance that the asset manager reaped the gains of an appreciating share price throughout the entire quarter rather than just a few days. This also applies to decreasing holdings in unsuccessful stocks as well.

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