Chartered Financial Analyst Level 1
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An analyst evaluates a company's historical price multiples and gathers the following data:
- Current EPS:
$3.00
- Current Cash Flow per Share:
$4.00
- Current Book Value per Share:
$40.00
- Historical P/B: 0.6
- Historical P/E: 12.0
- Historical P/CF: 8.0
Given the current share price of
$30, the company's shares are most likely overvalued based on which of the following multiples?
An analyst evaluates a company's historical price multiples and gathers the following data:
- Current EPS:
$3.00 - Current Cash Flow per Share:
$4.00 - Current Book Value per Share:
$40.00 - Historical P/B: 0.6
- Historical P/E: 12.0
- Historical P/CF: 8.0
Given the current share price of
$30, the company's shares are most likely overvalued based on which of the following multiples?
Exam-Like
A
Price-to-Book (P/B) ratio
50.0%
B
Price-to-Earnings (P/E) ratio
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