1. An analyst is estimating the intrinsic value of a new company. The analyst has one year of financial statements for the company and has calculated the average values of a variety of price multiples for the industry in which the company operates.

The analyst plans to use at least one model from each of the three categories of valuation models. The analyst is least likely to rely on the estimate(s) from the:

A. Multiplier model(s).

B. Present value model(s).

C. Asset-based valuation model(s).

2. Based on a company’s EPS of €1.35, an analyst estimates the intrinsic value of a security to be h16.60. Which type of model is the analyst most likely to be using to estimate intrinsic value?

A. Multiplier model.

B. Present value model.

C. Asset-based valuation model.