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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 |
|---|---|
| akirchner1 | Makes sense because it's objective. |
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® 2024 Level I Curriculum, Volume 3, Module 8.