Many analysts prefer to use a relative valuation technique, such as comparing P/E ratios, because these...

Many analysts prefer to use a relative valuation technique, such as comparing P/E ratios, because these techniques are more grounded in theory than the DCF approaches.

True or False?

Expert Solution

Most analysts prefer the relative valuation technique due to the ease and simplicity associated with the method. However, it is the DCF method that is more grounded in theory.

Answer is False

jeff jeffy answered 2 years ago

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