Reading 42: Market-Based Valuation: Price and Enterprise Val 2010, following, valuation, likely, center

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Session 12: Equity Investments: Valuation Models
Reading 42: Market-Based Valuation: Price and Enterprise Value Multiples

LOS a: Distinguish among types of valuation indicators.

 

 

 

Which of the following is least likely to be used as a valuation indicator?

A) Price multiples.

B) Corporate valuation indices.

C) Momentum in a time series.

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Two common types of valuation indicators are price multiples (price compared to some measure of fundamental value) and enterprise value multiples (total market valuation of all sources of capital). A third category of valuation indicators is momentum; this typically relates to trends in time series data. Corporate valuation indices is a made-up term.