All of the following are logical steps that enable the analyst to determine reliable estimates of value except:
A) understand the economics of the industry
B) assess the particular firm's strategy
C) evaluate the quality of the firm's accounting
D) derive a single point estimate of value for a share's current price

Question

Quizplus · Accepted Answer

Deriving a single point estimate of value for a share's current price is not a logical step that enables the analyst to determine reliable estimates of value. Instead, analysts should use multiple methods and data points to arrive at a range of values, which provides a more accurate estimate of a firm's worth.

All of the Following Are Logical Steps That Enable the Analyst