Valuation Terms
Trailing P/E
A P/E ratio based on earnings already reported over the recent past.
Also called: trailing price to earnings, TTM P/E
What it means
Trailing P/E uses historical earnings, often from the last twelve months, to compare price to actual reported performance rather than forecasted results.
Why it matters
It gives a backward-looking valuation snapshot that is grounded in reported numbers, though it may miss rapid business changes.