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- Topic: P/BV for software companies
| Author | Topic: P/BV for software companies |
|---|---|
| bobsky @2014-04-25 08:04:59 |
I am preparing for L2 CFA, and I found an explanation to a question in Schweser that I don't agree with: The price/book ratio is best for valuing companies with small amounts of fixed assets, like software makers. My question is: how is that true, when most assets of software companies are intangible assets, thats value is easily manipulated? I would be thankful for explanation. |
| AnsariZ @2014-06-06 12:57:50 |
No, I agree with you. I dont think co. like Microsoft has lot of tangible assets. P/BVPS is motly appropriate for company with the tangible assets, specaily those who have assets like I would say like, Walmart, also banks who have lots of assets such as security vs. their deposits,or libilities. Can you also cite the reference so I lie to look it up as in Sch notes? Thanks. Zahoor L II Can... P.S: Just posted a query reg. resuming an existing practice test, I finally figured it and find my incomplete practice exam under, 'Exam Manager.' |
CFA Discussion Topic: P/BV for software companies
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
