### Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

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**Basic Question 2 of 3**

If an analyst estimates a security's intrinsic value to be $15 based on its sales-per-share figure of $6.15, the analyst must be using a ______ in the valuation process.

B. multiplier model

C. asset-based valuation model

A. present value model

B. multiplier model

C. asset-based valuation model

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**User Contributed Comments**
2

User |
Comment |
---|---|

warnggg |
Pretty straight forward here... |

zriddle |
Ratio = Multiplier Model |

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.

#### Tamara Schultz

**Learning Outcome Statements**

evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market

describe major categories of equity valuation models

*CFA® 2024 Level I Curriculum, Volume 3, Module 8.*