An advantage of the 'valuation multiple method' as compared to the 'discounted cash flow method' is that it takes into account important differences between different firms.

Question

Quizplus · Accepted Answer

The 'valuation multiple method' often uses broad metrics that apply to entire industries or sectors, making it less precise in accounting for the unique aspects and differences between individual firms compared to the 'discounted cash flow method', which is more detailed and considers the specific future cash flows and growth prospects of a company.

An Advantage of the 'Valuation Multiple Method' as Compared to the 'Discounted