- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 5. Multiplier Models
CFA Practice Question
A justified price multiple is the estimated fair value based on ______.
B. the method of forecasted fundamentals only
C. either the method of comparables or the method of forecasted fundamentals
A. the method of comparables only
B. the method of forecasted fundamentals only
C. either the method of comparables or the method of forecasted fundamentals
Correct Answer: C
We can justify a multiple based on the method of comparables or the method based on forecasted fundamentals.
User Contributed Comments 1
| User | Comment |
|---|---|
| Inaganti6 | trailing vs leading |