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Basic Question 1 of 3

Stock valuation would be useful if an analyst wants to

I. predict how soon the price of an undervalued stock will go up by 10%.
II. select stocks with high liquidity.
III. minimize her overall execution costs.
IV. evaluate the impact of a new business model implemented by the company's marketing department.

User Contributed Comments 1

User Comment
vi2009 valuation is not about prediction.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

contrast absolute and relative valuation models and describe examples of each type of model;

describe sum-of-the-parts valuation and conglomerate discounts;

explain broad criteria for choosing an appropriate approach for valuing a given company.

CFA® 2025 Level II Curriculum, Volume 3, Module 20.