AuthorTopic: L2 assistance: Justified Price Multiples
AWR24
@2010-07-18 20:14:06
Dear All,

Appreciate if someone can explain to me to derive the justified price multiples ratios from the normal ratios.

for instance, the P/B ratios is mkt Price/BVPS. The justified P/B is ROE-g/r-g.

Greatly appreciate your help.

regards,

CFA Discussion Topic: L2 assistance: Justified Price Multiples

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