Forward Air (FWRD) P/E Chart

What is a PE Ratio?

The PE Ratio chart for Forward Air (FWRD) is a valuation observation.

A PE Ratio is a price to earnings ratio that has historically helped investors define fair value. This is often referred to as the multiple of a stock, and when groups, markets, or sectors are defined the multiples of all the stocks in those groups can be averaged to define average PE multiples as well.

Average PE multiples have been popularized in recent years because historical comparisons make current valuations look stretched. Instead of comparing historical averages, investors today use peer groups to compare PE multiples for individual companies because those stocks often trade in the higher PE spectrum that exists in today’s environment.

However, the fact remains that a PE ratio reveals how much an investor is willing to pay for the earnings of a company at any given time. The higher the PE multiple the more expensive a company may be, but that is not always true. The PE ratio simply reveals how many times earnings an investor is willing to pay, or that a shareholder is willing to maintain. The PE Ratio alone does not reveal fair value.

Fair value is what someone is willing to pay, they say, and that is true, but in a time of free money and stimulus the willingness to pay more may also be skewed. Multiples can increase based on fabricated demand even if earnings growth does not warrant the higher valuation levels.

PE ratios still provide comps to peer groups, but they do not represent free market fair value anymore.

How is the Price to Earnings (PE) Ratio Calculated?

The PE Ratio = (Per Share Stock Price/EPS)

PUBLIC TRADING ACHIVES FOR FWRD. (Real time data for subscribers only)

Forward Air FWRD Trading Report

October 20, 2021

Forward Air FWRD Trading Report

October 09, 2021

Forward Air FWRD Trading Report

September 29, 2021

Forward Air (FWRD) Trading Report

September 20, 2021

Forward Air FWRD Pivot Points

September 10, 2021

Forward Air FWRD Technical Analysis

August 31, 2021

Forward Air FWRD Investment Report

August 20, 2021

Forward Air (FWRD) Trading Report

August 10, 2021

Forward Air (FWRD) Trading Report

July 31, 2021

Forward Air (FWRD) Trading Report

July 22, 2021

Forward Air FWRD Trading Report

July 12, 2021

Forward Air FWRD Technical Analysis

July 02, 2021

When Forward Air (FWRD) Moves Investors should Listen

June 23, 2021

Trend Tracker for Forward Air FWRD

June 13, 2021

The Fundamental Case for Forward Air FWRD Using a Price Based Model

June 03, 2021