Question 357 PE ratio, Multiples valuation
Which of the following investable assets are NOT suitable for valuation using PE multiples techniques?
(a) Common equity in a listed public mining extraction company that will cease operations, wind up, and return all capital to shareholders in one year when its sole gold mine becomes depleted.
(b) Common equity in a small private owner-operated mining services company whose main asset is its sole tanker truck which delivers fuel to mines. The firm's shares are 100% owned by Bob, the driver of the tanker truck.
(c) Common equity in a large listed public company in the banking industry.
(d) Residential apartment real estate.
(e) Commercial warehouse real estate.
Copyright © 2014 Keith Woodward