The Traderszone Network

Published in TZ Latest News 29 August, 2014 by The TZ Newswire Staff

How To Read Between The Lines Of Asian Financial Statements

By CFA Institute Contributors:

By Larry Cao, CFA

When I was a new analyst following technology stocks for a predominantly US equity fund, one thing I noticed in doing competitor analysis was the low multiples of some Asian companies, even after taking into account the more pronounced differences in accounting systems in those days. Did low-multiple stocks necessarily present good values? Were there any systematic reasons behind the low valuation?

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