- CFA Exams
- CFA Level I Exam
- Study Session 15. Alternative Investments
- Reading 40. Publicly Traded Real Estate Securities
- Subject 3. Relative value (price multiple) approach
CFA Practice Question
The REIT sector equivalent of P/Cash Flow is:
B. P/AFFO.
C. P/CFP.
A. P/FFO.
B. P/AFFO.
C. P/CFP.
Correct Answer: B
Cash flow matters more than accounting numbers. However, it is hard to gather AFFO estimates because of the absence of a universally accepted methodology.
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