Microvaluation (SS7 - CFAI Volume 3 Reading 24) address, return, future

dmrktrading

Where in Reading 24 do they address LOS 24f (LOS 24f: evaluate the intrinsic value and estimated rate of return of the stock market by estimating future earnings per share and determining an appropriate earnings multiplier)? Is it on pages 178-179? Or somewhere else?
Thanks in advance!

hariRaj

Closer to Grinold reading…

kim226

I don’t understand your answer. Grinold is not mentioned in Reading 24 (is it?) - LOS 24f should be covered in Reading 24 - but which page(s)? Thanks!

ramzes

Arrgghhh I don’t have Schweser! Anyone know which page LOS 24f is covered within the Reading 24 of the CFAI textbook? It must be there because it is a LOS! Thanks!!!

ramdabom

On page 171 of book 3 is how to estimate future earnings per share.

ba736

just P/E multiple

edgeon

Basically, the principles and processes are almost same as that of individual stock as in L2, right ?

luckygiftvn

The steps are same: start from sales down to earnings, but the logic/drivers of some numbers are a bit different (e.g., depreciation, margin,..). Recommend that you walk through an example to make sure you understand the logic.

sabaruch

elcfa,
TKVM for your recommendation.