Neither the P/E approach nor the dividends-and-earnings approach rely on dividends as the key input into the valuation of a stock.

Question

Quizplus · Accepted Answer

Both the P/E approach and dividends-and-earnings approach take into account more than just dividends when determining the value of a stock. The P/E approach looks at the stock price relative to the company's earnings per share, while dividends-and-earnings approach considers both dividends and earnings as factors in determining the value of a stock.

Neither the P/E Approach nor the Dividends-And-Earnings Approach Rely on Dividends