Franchise value, are you kidding?

I’m one of the bums not yet through the material (plan to be done at the end of month then a month straight of doing questions/reviewing). Anyways I’m just going over franchise value in the equity section. I’m can’t help but read it and think: Are you frigging kidding me. The equation has so many variables that are subject to so many other variables, I can’t imagine you could get an accurate prediction. Does anyone actual use some of this stuff in real life? “The concept is based on breaking down a firm’s ‘observed’ P/E into two parts.” Like how do you even do that? You know on the test they just pull out numbers from the air and you just plug them into the equation they make you memorize. I found level I pretty interesting but some of this level II stuff is getting outlandish. Errrr I can’t wait till these exams are done and over with. I talked to a guy 2 weeks ago and he said it took him 3 try’s to pass level II. All the more motivation to buckle down and get it over with now! Sorry for the rant

I’m calling it quits with everything CFA when I’m 30 and taking the GMAT…I’m 26 now and ill be turning 27 on the same day we get L2 results…thats 2 tries for L2 and two tries for L3

You mean the franchise P/E?..OR just mocking?..-_- anyway it just try to tell another scope to spilt P/E of a company. intrinsic P/E uses the non-growth earning level, so the franchise P/E is the value of growing oppotunity for the company…~ when you are preparing you must think you can pass, otherwise you should not have registered it. that’s what I’ve been telling myself. I passed lv1 last June and passed FRM full last December and will get lv2 done in this June. BTW, I’m also 26 years old.