P/E ratio terminal value

CFA Level II Equities
#1

Vn = benchmark value of trailing terminal P/E x En Vn = benchmark value of forward terminal P/E x En+1 Can someone explain this Tx in advance

#2

Trailing P/E isP0/E0; you multiply it by last year’s earnings to get today’s price.

Leading (forward) P/E is P0/E1; you multiply it by next year’s (projected) earnings to get today’s price.

#3

Thank you

#4

You’re welcome.