- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 12. Introduction to Financial Statement Modeling
- Subject 5. The Forecast Horizon and Long-Term Forecasting
CFA Practice Question
Which is the least likely approach to forecast terminal value?
A. Inflection points
B. Historical multiples-based approach
C. DCF approach
Correct Answer: A
Inflection points are not used in forecasting the terminal value. These are points when the future looks different from the past.
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