Which of the following approaches to stock valuation is NOT based on a multiple of some figure from the financial statements?
A)the price-to-cash flow approach
B)the price-to-sales approach
C)the dividends-growth model
D)the price-to-earnings approach

Question

Quizplus · Accepted Answer

The dividends-growth model is a form of discounted cash flow analysis that estimates the intrinsic value of a stock based on its future dividends and growth rate. It is not based on a multiple of any figure from the financial statements. The other three approaches (price-to-cash flow, price-to-sales, and price-to-earnings) all use multiples of figures from the financial statements to value a stock.

Which of the Following Approaches to Stock Valuation Is NOT