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Basic Question 10 of 11
The P/E published in financial newspapers' stock listings is usually (an) ______.
B. leading P/E
C. average of trailing P/E and leading P/E
A. trailing P/E
B. leading P/E
C. average of trailing P/E and leading P/E
User Contributed Comments 1
User | Comment |
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akirchner1 | Makes sense because it's objective. |
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
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.