Are we expected/need to know the derivation of justified multiples formula ?

[HedgeFudge]

Hey guys ,
are we expected to know the derivation of each of the justified multiples formula , that we come across in the chapter on Market multiples in valuation .
Regards,
Fudge

 

[S2000magician]

No.
However, if you know the derivations, it may help you if you forget a particular formula.
I wrote an article on these that may be of some help: http://financialexamhelp123.com/justified-ratios-price-multiples/

 

[HedgeFudge]

Thanks a Ton S2000 . goign through your artiicle has made thing much easier for me .
Thanks and Regards,
Hedgefudge

 

[S2000magician]

My pleasure.