True or False

Valuation multiples reflect 'normalized' estimates of current financial performance rather than growth. In 'Relative Valuation', the value of equity, debt or an asset is compared with historical values, comparable companies or a benchmark or index. Also called 'Absolute Valuation', intrinsic valuation is based on it's current price or market value. The value of an asset is based on the expected future cash flows it will generate. Financial outperformance is defined as generating a positive retrun. Active investors are seeking positive alpha (a)