Practice Set - 1 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

A high P/E ratio may indicate:

Question 2

What is the primary objective of valuation in equity research?

Question 3

Which multiple is commonly used for early-stage companies with no earnings?

Question 4

Which valuation method is based on discounting future cash flows?

Question 5

Which assumption has highest sensitivity in DCF?

Question 6

Price to Earnings ratio is calculated as:

Question 7

Intrinsic value refers to:

Question 8

EV/EBITDA is useful because EBITDA is:

Question 9

If growth rate approaches discount rate in Gordon model, valuation becomes:

Question 10

In Gordon Growth Model, dividend is assumed to grow at:

Question 11

Free Cash Flow to Equity is available after:

Question 12

Higher discount rate generally leads to:

Question 13

Discount rate primarily reflects:

Question 14

Relative valuation compares company with:

Question 15

Which method is best suited for stable mature dividend-paying firms?

Question 16

Terminal value in DCF represents:

Question 17

Price to Book ratio compares market price with:

Question 18

Which model is suitable for valuing dividend-paying companies?

Question 19

Which formula is used in Gordon Growth Model?

Question 20

Free Cash Flow to Firm belongs to:

Question 21

Enterprise Value includes:

Question 22

Time value of money implies:

Question 23

Which factor increases intrinsic valuation?

Question 24

Margin of safety means:

Question 25

Book value method is less useful for:

Question 26

DCF valuation is most dependent on:

Question 27

A stock trading below intrinsic value is considered:

Question 28

Present value is calculated by:

Question 29

What is the relationship between risk and required return?

Question 30

Practice Set - 1