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Basic Question 2 of 3
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.
B. multiplier model
C. asset-based valuation model
A. present value model
B. multiplier model
C. asset-based valuation model
User Contributed Comments 2
| User | Comment |
|---|---|
| warnggg | Pretty straight forward here... |
| zriddle | Ratio = Multiplier Model |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market
describe major categories of equity valuation models
CFA® 2025 Level I Curriculum, Volume 3, Module 8.