All of the following are reasons why comparable companies analysis should be used in conjunction with other valuation methodologies EXCEPT:
A)Markets may be skewed due to investor sentiment
B)No two companies are the same
C)Valuation methods may vary by sector
D)Intrinsic valuation may be needed

Question

All of the following are reasons why comparable companies analysis should be used in conjunction with other valuation methodologies EXCEPT: 
A)Markets may be skewed due to investor sentiment
B)No two companies are the same
C)Valuation methods may vary by sector
D)Intrinsic valuation may be needed

Quizplus · Accepted Answer

Comparable companies analysis is a relative valuation method and does not inherently vary by sector; it is the intrinsic differences in companies and market conditions that necessitate using multiple valuation methods.

All of the Following Are Reasons Why Comparable Companies Analysis