Which of the Following Is Not considered a Relative Valuation

question 127

Multiple Choice

Which of the following is not considered a relative valuation technique?

• A) Price-earnings ratio
• B) Price/cash flow ratio
• C) Price/book value ratio
• D) Price/cost of goods sold ratio
• E) Price/sales ratio

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Definitions:

Probability

The calculation of how probable it is for an event to happen.

Batteries

Devices consisting of one or more electrochemical cells that store and supply electric energy.

Fair Die

A die that is perfectly balanced, ensuring that each of its faces has an equal chance of landing upward when rolled.

Probability

A means of expressing an event's probability on a scale that ranges from 0 to 1.