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Basic Question 8 of 11
A justified price multiple is the estimated fair value based on ______.
B. the method of forecasted fundamentals only
C. either the method of comparables or the method of forecasted fundamentals
A. the method of comparables only
B. the method of forecasted fundamentals only
C. either the method of comparables or the method of forecasted fundamentals
User Contributed Comments 1
| User | Comment |
|---|---|
| Inaganti6 | trailing vs leading |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the rationale for using price multiples to value equity, how the price to earnings multiple relates to fundamentals, and the use of multiples based on comparables
calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value
CFA® 2025 Level I Curriculum, Volume 3, Module 8.