Are we expected/need to know the derivation of justified multiples formula ?

CFA Level II Equities
#1

Hey guys ,

are we expected to know the derivation of each of the justified multiples formula , that we come across in the chapter on Market multiples in valuation .

Regards,

Fudge

#2

No.

However, if you know the derivations, it may help you if you forget a particular formula.

I wrote an article on these that may be of some help: http://financialexamhelp123.com/justified-ratios-price-multiples/

#3

Thanks a Ton S2000 . goign through your artiicle has made thing much easier for me .

Thanks and Regards,

Hedgefudge

#4

My pleasure.