V3, Reading 24, Relative Value Methodologies

How important is this section to the exam? I guess all materials are important but I’m working on the EOC questions and as many of the question/solution are so conceptual… Seems like it is difficult to test on it.

Reading 24 is in V4; Relative Value is in V3 Reading 19. I think relative value is a pretty important section as it contains gordon growth and it’s various combinations including the fed model, the yardeni formula and the tobin/equity q model among other things. I think it’s a safe bet that something from that section will be on the exam. As for the questions being conceptual, welcome to level 3. It’s not enough to know the equations, you need to know how everything interrelates with other things.