Valuing business can sometimes be very complex

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Valuing a business can sometimes be very complex and there is many different approachs. At the end of the day you want to make sure the price you pay is worth it.. One of the models they use for valuation in the chapter is the PE ratio, market value of stock / EPS. I want to ask why using this method could end up valuing the company for more than it is worth?

Reference no: EM131998119

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