Which of the following is NOT considered a relative valuation technique?
A) price-earnings ratio
B) price/cash flow ratio
C) price/book value ratio
D) price/cost of goods sold ratio
E) price/sales ratio

Question

Quizplus · Accepted Answer

Price/cost of goods sold ratio is not a commonly used relative valuation technique. Relative valuation typically involves comparing a company's market value to its financial performance metrics such as earnings, cash flow, book value, or sales, not the cost of goods sold.

Which of the Following Is NOT Considered a Relative Valuation