Which of the following is NOT a positive attribute of the price-earnin

Which of the following is NOT a positive attribute of the price-earnings multiple valuation model?

A) It is easy to use.
B) It implicitly assumes that comparable firms are already fairly pried in the market place.
C) It is forward-looking.
D) It is based on relative market measures rather than book measures.

 

 

ANSWER

B

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