Reading 42: Market-Based Valuation: Price and Enterprise Val

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

LOS s: Discuss the sources of differences in cross-border valuation comparisons.

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

Cultures.

B)	Growth opportunities.

C)	Intra-country market indicators.

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

3^#

发表于 2010-4-19 16:13 | 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.

2^#

发表于 2010-4-19 16:13 | 只看该作者

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

A)	Intra-country market indicators.

B)	Comparative advantage.

C)	Accounting methods.

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