Which of the following represent two major approaches used to value stocks?
A) Discounted cash flow techniques and absolute valuation techniques
B) Discounted cash flow techniques and relative valuation techniques
C) Compound free cash flow techniques and relative valuation techniques
D) Markowitz diversification techniques and relative valuation techniques

Question

Quizplus · Accepted Answer

Discounted cash flow techniques and relative valuation techniques are the two major approaches used to value stocks. Discounted cash flow involves estimating the present value of expected future cash flows, while relative valuation involves comparing a company's valuation metrics to those of similar companies.

Which of the Following Represent Two Major Approaches Used to Value