Statements concerning relative valuation

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All of the following statements concerning relative valuation are true, EXCEPT:

a. Multiples are rarely used in the determination of terminal values for DCF models

b. When analysts contend a stock is over- or under-valued, it is usually a judgement based on relative valuation

c. Most equity research reports are based on multiples such as P/E ratios

d. Most investment rules of thumb are based on multiples

Reference no: EM133118625

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