Reading 44: Market-Based Valuation: Price and Enterprise Val

Session 12: Equity Investments: Valuation Models
Reading 44: Market-Based Valuation: Price and Enterprise Value Multiples

LOS p: Discuss the sources of difference in cross-border valuation comparisons.

Which of the following factors is a source of differences in cross-border valuation comparisons?

A)	Accounting methods.

B)	Intra-country market indicators.

C)	Comparative advantage.

Different accounting conventions make cross-border comparisons for valuation purposes challenging.

[此贴子已经被作者于2011-3-21 11:36:23编辑过]

2^#

发表于 2011-3-18 15:56 | 只看该作者

Which of the following price multiples is most severely damaged by international accounting differences?

A)	Price to cash flow from operations (P/CFO).

B)	Price to free cash flow to equity (P/FCFE).

C)	Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).

EV/EBITDA is the most seriously affect because it is most closely tied to accounting conventions.

3^#

发表于 2011-3-18 15:57 | 只看该作者

Which of the following factors is NOT a source of differences in cross-border valuation comparisons?

A)	Intra-country market indicators.

Cultures.

C)	Growth opportunities.

Intra-country market indicators are not, by definition, cross-border.