- CFA Exams
- 2023 Level II
- Topic 5. Equity Valuation
- Learning Module 25. Market-Based Valuation: Price and Enterprise Value Multiples
- Subject 10. Cross-Border Valuation
Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Subject 10. Cross-Border Valuation PDF Download
It's difficult to value companies using comparables in an international setting. Comparing companies across borders frequently involves accounting method differences, cultural differences, economic differences, and resulting differences in risk and growth opportunities.
For example, earnings and other income-based values will be the ones most affected by differences in accounting standards. There is not much difference in treatment of cash flow or revenues between GAAP and IAS. Consequently, the difference in accounting standards will affect P/E and P/B multiples more significantly than P/FCFE or P/CF.
Learning Outcome Statementsexplain sources of differences in cross-border valuation comparisons;
CFA® 2023 Level II Curriculum, Volume 4, Module 25
User Contributed Comments 0
You need to log in first to add your comment.
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
My Own Flashcard
No flashcard found. Add a private flashcard for the subject.