Question: When comparing companies using valuation multiples, why is it important to ensure that the companies are similar? Option A To avoid differences in accounting practices
When comparing companies using valuation multiples, why is it important to ensure that the companies are similar?
Option A To avoid differences in accounting practices that could distort the multiples.
Option B To ensure that the multiples reflect similar growth prospects and risk profiles.
Option C To guarantee that the companies have the same market capitalization.
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