Question: When doing relative valuation, you may end up with different trailing and leading P/E ratios. This is due to: a. Differences in reported earnings and

When doing relative valuation, you may end up with different trailing and leading P/E ratios. This is due to:

a.

Differences in reported earnings and forecast earnings per share, resulting in an increased forecast (leading) P/E due to greater growth potential in earnings for that entity.

b.

Differences in reported earnings and forecast earnings per share, reflecting the estimated growth potential in earnings for that entity.

c.

Differences in reported earnings and forecast earnings per share, resulting in a reduced forecast (leading) P/E due to lower growth potential in earnings for that entity.

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