Question #92
Reading: Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples
PDF File: Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples.pdf
Page: 32
Status: Unattempted
Correct Answer: B
Question
The warranted or intrinsic price multiple is called the:
Answer Choices:
A. multiple implied by historical growth
B. multiple implied by the market price
C. justified price multiple
Explanation
A justified price multiple is the warranted or intrinsic price multiple. It is the estimated fair
value of that multiple.