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Forrester Research (NAS:FORR) PE Ratio

: 41.71 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2023-06-10), Forrester Research's share price is $29.20. Forrester Research's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $0.70. Therefore, Forrester Research's PE Ratio for today is 41.71.

During the past 13 years, Forrester Research's highest PE Ratio was 257.55. The lowest was 20.01. And the median was 49.78.

Forrester Research's EPS (Diluted) for the three months ended in Mar. 2023 was $-0.21. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $0.70.

As of today (2023-06-10), Forrester Research's share price is $29.20. Forrester Research's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2023 was $0.70. Therefore, Forrester Research's PE Ratio without NRI ratio for today is 41.71.

During the past 13 years, Forrester Research's highest PE Ratio without NRI was 257.55. The lowest was 20.01. And the median was 49.78.

Forrester Research's EPS without NRI for the three months ended in Mar. 2023 was $-0.21. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2023 was $0.70.

During the past 12 months, Forrester Research's average EPS without NRI Growth Rate was -45.70% per year.

During the past 13 years, Forrester Research's highest 3-Year average EPS without NRI Growth Rate was 203.70% per year. The lowest was -66.90% per year. And the median was 11.90% per year.

Forrester Research's EPS (Basic) for the three months ended in Mar. 2023 was $-0.21. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2023 was $0.73.

Back to Basics: PE Ratio


Forrester Research PE Ratio Historical Data

The historical data trend for Forrester Research's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Forrester Research Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.21 At Loss 79.06 45.88 31.37

Forrester Research Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.74 30.28 22.09 31.37 46.21

Competitive Comparison

For the Consulting Services subindustry, Forrester Research's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Forrester Research PE Ratio Distribution

For the Business Services industry and Industrials sector, Forrester Research's PE Ratio distribution charts can be found below:

* The bar in red indicates where Forrester Research's PE Ratio falls in comparison to its industry or sector. The grey bar indicates the PE Ratio's extreme value range as defined by GuruFocus.



Forrester Research PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Forrester Research's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=29.20/0.700
=41.71

Forrester Research's Share Price of today is $29.20.
Forrester Research's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.70.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Forrester Research  (NAS:FORR) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Forrester Research PE Ratio Related Terms

Thank you for viewing the detailed overview of Forrester Research's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Forrester Research (NAS:FORR) Business Description

Forrester Research logo
Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Roy Sarah Le officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Warren N Romine director 7325 16TH STREET NW, WASHINGTON DC 20012
Sharyn Leaver officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Alicia Lee officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Nathaniel Swan officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
George F Colony director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC, 1033 MASSACHUSETTS AVE, CAMBRIDGE MA 02138
Leo Christian Finn officer: Chief Financial Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Michael Kasparian officer: Chief Information Officer C/O FORRESTER RESEARCH, 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Shirley Macbeth officer: Chief Marketing Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Sherri Kottmann officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Carrie Johnson officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Jean Birch director 3050 SOFT HORIZON WAY, LAS VEGAS NV 89135
Kelley Hippler officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DR., CAMBRIDGE MA 02140
Anthony J Friscia director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Yvonne Wassenaar director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140

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