Question #129
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: 46
Status: Unattempted
Correct Answer: A
Question
An analyst focusing mostly on financial stocks is likely to prefer valuing stocks via the:
Answer Choices:
A. price/book ratio
B. price/sales ratio
C. dividend yield
Explanation
The price/book ratio is a preferred tool for valuing financial stocks.