Forward multiples refer to valuation multiples calculated using earnings estimates rather than actual earnings.
Where do I find it?
Forward multiples are available in the Forecast Multiples view under Company Data.
What do I need to know?
Forward multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price , while forward multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV.
EV is not a suitable metric for financial institutions (banks and insurance firms) because interest is a critical component of both revenue and expenses. Likewise, EBIT or EBITDA are not calculated because separating operating and financing activities is impossible as interest, investments, and debt are related to the company’s core operations. For insurance firms, analysts tend to use the concept of embedded value, which unfortunately is not available on Infront Analytics.
On most views, you can click a multiple figure to check the underlying calculation formula. It is also possible to customize the way current EV is calculated .
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article