I understand that for a justified multiple we use a DCF method to arrive at the numerator. However it seems the CFA curriculum interchange between leading and trailing for the denominator when they ask for Justified XX using forecasted fundamentals.
They asked for Justified P/E using forecasted fundamentals and used leading E in the denominator
They asked for Justified P/FCFE using forecasted fundamentals and used trailing in the denominator
My question is:
- When it doesn’t specifically say leading or trailing, should we assume and only asked for its trailing? (as the choice is only really given when discussing earnings not CF, FCFE or Sales etc)