- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Market-Based Valuation: Price and Enterprise Value Multiples
- Subject 2. Price to Earnings: Determining Earnings
CFA Practice Question
Which statement(s) is (are) false?
A. P/E is usually more stable than P/CF
B. P/S is usually more stable than P/E
C. P/BV is usually less volatile than P/E
Explanation: Book value, sales, and cash flows are generally more stable than earnings.
User Contributed Comments 2
| User | Comment |
|---|---|
| kwanlo3 | PE is the most volatile method |
| shival | Managment could easily manipulate earnings, so PE is the most volatile method |