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Which of the following would not be used as a summary performance measure when using market multiples to determine value? A) Stock price B) Net operating assets C) Net operating profit after tax D) Book
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Which of the following would not be used as a summary performance measure when using market multiples to determine value? A) Stock price B) Net operating assets C) Net operating profit after tax D) Book value

User Tyler Muth
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Answer:

A) Stock price

Step-by-step explanation:

The value in the financial statement is used as a performance measure in the calculation of market multiple. In Enterprise value multiple the stock price is compared with the performance measure of Sales or Income of the company. In equity value multiple performance measures are earnings, sales, book value or something similar to these. Stock price is not used as a performance measure here.

User Venryx
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