Analysts Prefer the Following Three Valuation Methods Over All Others

question 27

Multiple Choice

Analysts prefer the following three valuation methods over all others:

• A)EVA,cash flow multiplier and sales multiplier
• B)Enterprise value,discounted cash flow,and sales multiple
• C)Sales multiple,earnings multiple,and discounted cash flow
• D)EVA,return on equity and discounted cash flow
• E)Enterprise value,earnings multiple,and sales multiple

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Definitions:

Common Denominator

The shared multiple of the denominators of two or more fractions, allowing them to be compared or combined.

Sum

The result of adding two or more numbers or quantities together.

Product

The result of multiplying two or more quantities together.

Gigabytes

A unit of digital information storage equal to 1,024 megabytes or roughly one billion bytes.