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:

Commoditization

The process by which unique products become indistinguishable from one another in the eyes of the market, often leading to competition based primarily on price.

Product Accessories

Supplementary items sold alongside the main product to enhance its functionality or appeal.

Negative Profitability

A financial situation where a business or organization incurs more expenses than revenues, leading to a net loss.