Valuation Multiples Quiz

Ratios are calculated by comparing financial data with other companies, but not across time

Valuation multiples are not useful tools for investment bankers

The market valuation of a company is solely based on its actual worth

Investors' attitudes towards a company have no impact on its market valuation

Investment bankers do not use ratios to gain insights about companies and industries

Valuation multiples can help investment bankers gauge when demand for a company's stock or debt may increase or decrease.

Ratios used by investment bankers are solely calculated by comparing financial data across time and with similar companies.

Market valuation of a company is based solely on its actual worth.

Investment bankers do not make use of ratios to glean insights about companies and industries.

The top question investors ask is how much a company is worth, rather than how much other investors say it's worth.