Financial Terms Glossary

Forward Multiple


If a company is trading on what is called a 'forward multiple' its shares are valued at a multiple of its prospective earnings rather than the value of its underlying assets. (See also PE ratio.)For example, shares may be valued on a forward multiple of 8 tmes earnings if respectable groth is anticipated.


Companies can be valued in a number of ways. Forward multiple is a sexy way of saying that the total worth of a company is a multiplier of its projected annual profits. Eg Company A makes $1 Million per annum. Its total value is $10 Million. It has a forward multiple of 10 ($10 Million divided by $1 Million) Easy... now go and impress your friends.

What we do

At Shark Finesse we have created business case software to help you win budget and change the way you talk to customers about business value.
Find out how

We'd love to hear from you!

+44 (0)1256 338635
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK