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Which statement is false about valuation based on comparable

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Reference no: EM132869493

Question 1: Which of the following statement is FALSE about valuation based on comparable firms?

A. We can estimate the value of a firm's shares by multiplying its current earnings per share by the average P/E ratio of comparable firms.

B. Although valuation multiples technique is simple to use, it relies on some very strong assumptions about the similarity of the comparable firms to be firm you are valuing

C. Using multiples will not help us determine an entire industry overvalued

D. None of the above.

Reference no: EM132869493

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