Relative valuation methods tend to be more sophisticated,more formal and less intuitive than discounted cash flow techniques.

Question

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Relative valuation methods are simpler and more intuitive as they rely on comparing the valuation of a company to its peers or industry averages. Discounted cash flow techniques involve forecasting future cash flows and discounting them back to their present value, which can be more complex and require more assumptions.

Relative Valuation Methods Tend to Be More Sophisticated,more Formal and Less