Session 12: Equity Investments: Valuation Models
Reading 42: Market-Based Valuation: Price and Enterprise Value Multiples
LOS g: Discuss normalized EPS and the methods of normalizing EPS and calculate normalized EPS by each method.
The average return on equity (ROE) earnings normalization method relies on:
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A) |
average ROE over the most recent cycle. | |
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B) |
average earnings per share (EPS) over the most recent cycle. | |
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The average return on equity normalization method normalizes EPS as the average ROE over the most recent full cycle multiplied by book value per share. | 
发表于 2010-4-19 15:35
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