In this example, we use alternative definitions of forward to compute forward P/Es. Exhibit 4 presents actual
Question:
In this example, we use alternative definitions of “forward” to compute forward P/Es.
Exhibit 4 presents actual and forecasted EPS for Boyd Gaming Corp. (NYSE: BYD)
that owns and operates 21 gaming entertainment properties in Nevada, Mississippi, Illinois, New Jersey, Indiana, Kansas, Iowa, and Louisiana.
On 9 August 2013, BYD closed at $12.20. BYD’s fiscal year ends on 31 December. As of 9 August 2013, solve the following problems by using the information in Exhibit 4:
i. Calculate BYD’s forward P/E based on the next four quarters of forecasted EPS.
ii. Calculate BYD’s NTM P/E.
iii. Calculate BYD’s forward P/E based on a fiscal-year definition and current fiscal year (2013) forecasted EPS.
iv. Calculate BYD’s forward P/E based on a fiscal-year definition and next fiscal year (2014) forecasted EPS.
Step by Step Answer:
i We sum forecasted EPS as follows The forward PE by ...View the full answer
