Calculating a forward P/E is a useful tool for investors, whilst...

Calculating a forward P/E is a useful tool for investors, whilst historical P/E's are OK as a guide its NOT always a good indication of the future.

The forward P/E ratio (or forward price-to-earnings ratio) divides the current share price of a company by the estimated future (“forward” earnings per share (EPS) The EPS formula indicates a company's ability to produce net profits for common shareholders.

Forward-looking Stock Market

Since the stock market is forward-looking (as opposed to backward), it places more emphasis on what is expected to happen in the future, rather than what happened in the past.
For this reason, more emphasis is typically placed on forward valuation multiples, rather than historical multiples.


If you want to look and invest only looking at historical P/E's its up to you, however I prefer to look at the future and calculate accordingly.
If you want to listen to all the analysts then you should've sold already and bought elsewhere.

Iron ore in 2021 is looking like… iron ore in 2020
Mining
December 26, 2020

• Iron ore prices are forecast to moderate to below $US100 per tonne in the years ahead
• ‘Falling steel mill margins in China and rising iron ore port stocks would be catalysts for lower iron ore prices’: CBA

Have the iron ore bears got it wrong?

• METALS
  
• 15 Dec 2020 | 11:08 UTC