A weakness of the PE approach to valuing stock is that it is

Name: A weakness of the PE approach to valuing stock is that it is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The PE ratio is based on industry averages, which may not accurately reflect the specific factors and performance of an individual firm. As a result, using this approach alone may lead to inaccurate valuations. The other options are not directly related to the weakness of the PE approach, although they may be factors to consider when using other valuation methods.

A Weakness of the PE Approach to Valuing Stock Is