Trailing P/E uses last year's actual earnings. Forward P/E uses next year's analyst estimate. Same price, different denominator — so the gap between them measures how much earnings growth the market has already paid for. A large gap means the bar is set high, not that the stock is cheap. Check the surprise history before you act on the gap.
Universe
Compression
Gap > 40%. Big growth priced in. High IV-crush risk into earnings.
Neutral
Gap 0–40%. Modest growth expected. Standard handling.
Inversion
Gap < 0. Earnings expected to fall — or accounting artifact. Verify.
Ticker
Trailing
Forward
Gap
Bucket
Surprise
Earnings
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