CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

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.

A. present value model
B. multiplier model
C. asset-based valuation model
Correct Answer: B

The analyst must be using a multiplier model based on the P/S multiple.

User Contributed Comments 2

User Comment
warnggg Pretty straight forward here...
zriddle Ratio = Multiplier Model
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