> Is forward p/e supposed to be high?

Is forward p/e supposed to be high?

Posted at: 2014-12-05 
You could say a high forward p/e is because the future price will be high. You could also say the earnings are low yielding a high p/e

Forward or prospective p/e is todays price divided by next years profit/earnings per share. The prospective p/e should be lower than current (if earnings are expected to increase). Of course the share price will possibly increase, lowering the p/e

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You could say a high forward p/e is because the future price will be high. You could also say the earnings are low yielding a high p/e