- CFA Exams
- 2025 Level II
- Topic 5. Equity Valuation
- Learning Module 23. Market-Based Valuation: Price and Enterprise Value Multiples
- Subject 10. Cross-Border Valuation
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Subject 10. Cross-Border Valuation PDF Download
It's difficult to value companies using comparables in an international setting. Comparing companies across borders frequently involves accounting method differences, cultural differences, economic differences, and resulting differences in risk and growth opportunities.
For example, earnings and other income-based values will be the ones most affected by differences in accounting standards. There is not much difference in treatment of cash flow or revenues between GAAP and IAS. Consequently, the difference in accounting standards will affect P/E and P/B multiples more significantly than P/FCFE or P/CF.
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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
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