Reading Investment Valuation by Aswath Damodaran, there is a section that says that
in periods of rising earnings, the forward PE yields consistently lower values the the trailing PE, which, in turn, is lower than the current PE.
So, here, forward PE < TTM PE < current PE
This does not make sense to me. In a period of rising earnings (the PE denominator) we would have
(TTM) EBIT(t-k) < (current) EBIT(t0) < (forward) EBIT(t+k)
and since price (the numerator) is just the current market price, I would think the PE orders in a rising earnings situation go like
forward PE < current PE < TTM PE
Can anyone see what I am missing here?