<h2>Trailing Price-to-Earnings (Trailing P/E)</h2>
<p>The Trailing Price-to-Earnings (Trailing P/E) ratio is a valuation metric that measures the current price of a stock relative to its earnings over the past 12 months. It is a dynamic version of the traditional P/E ratio, adjusting for the most recent earnings data.</p>

<h2>How It Works</h2>
<p>The Trailing P/E is calculated by dividing the current price of a stock (<strong>P</strong>) by its earnings per share (EPS) over the past four quarters (<strong>E</strong>).</p>
<p>Formula: Trailing P/E = P / E</p>
<p>For example, if a stock is trading at $50 and its EPS over the past year was $2, the Trailing P/E would be 25 (50 / 2).</p>

<h2>Why It Matters for Traders</h2>
<p>The Trailing P/E is a useful tool for traders as it helps to:</p>
<ul>
  <li>Evaluate whether a stock is overvalued or undervalued by comparing its current price to its earnings.</li>
  <li>Identify stocks that may be experiencing rapid growth or decline in earnings.</li>
  <li>Compare the valuation of a stock to its industry peers or the broader market.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> platform, traders can easily access the Trailing P/E ratio for a wide range of stocks, helping them to make more informed trading decisions.</p>

<h2>Example</h2>
<p>Consider two stocks, A and B:</p>
<table>
  <tr>
    <th>Stock</th>
    <th>Current Price</th>
    <th>Trailing EPS</th>
    <th>Trailing P/E</th>
  </tr>
  <tr>
    <td>A</td>
    <td>$100</td>
    <td>$4</td>
    <td>25</td>
  </tr>
  <tr>
    <td>B</td>
    <td>$50</td>
    <td>$2</td>
    <td>25</td>
  </tr>
</table>
<p>Both stocks have the same Trailing P/E ratio, but Stock A is trading at twice the price of Stock B. This could indicate that Stock A is overvalued relative to its earnings.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The Trailing P/E ratio helps traders evaluate the valuation of a stock based on its recent earnings.</li>
  <li>It is calculated by dividing the current price of a stock by its earnings per share over the past 12 months.</li>
  <li>Traders can use the Trailing P/E to identify overvalued or undervalued stocks and to compare the valuation of different stocks.</li>
  <li>The Trailing P/E is available on the MetaTrader 5 platform for a wide range of stocks.</li>
</ul>