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
25.0%
C
Price-to-Cash Flow (P/CF) ratio
25.0%
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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? | Chartered Financial Analyst Level 1 Quiz - LeetQuiz