- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 20. Equity Valuation: Applications and Processes
- Subject 3. The Valuation Process
CFA Practice Question
An equity analyst is trying to value a publicly-traded company using its disclosed accounting figures. He should carefully analyze quantitative information available but not distort the accounting figures by taking his own subjective views. True or False?
Correct Answer: False
The analyst should scrutinize footnotes and other relevant information to determine the quality of the disclosed accounting figures to estimate the intrinsic value of the company's stock.
User Contributed Comments 1
| User | Comment |
|---|---|
| vi2009 | footnotes and disclosure reveals more than what's in the financial statements. he then could play detective and distort financial statements with adjustment according to his findings |