---
title: Optimal Valuation Ratio: Forward Price Ratios
url: https://www.ml-quant.com/papers/ssrn/4625138/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4625138
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4625138
featured: 2023-11-08
citations: unknown
topic: Econometrics & Forecasting
---


# Optimal Valuation Ratio: Forward Price Ratios

Forward Price Ratios: The research criticizes the use of trailing price ratios for predicting stock market returns due to changes in cash flow growth, suggesting the use of forward price ratios scaled by cash flow forecasts for better valuation.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4625138
- Identifier: SSRN 4625138
- Released: 2022-12-02
- First featured: Quant Letter No. 25 (2023-11-08): https://www.ml-quant.com/issues/2023-11-08/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Econometrics & Forecasting

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