Question: Why is relative valuation considered more intuitive compared to absolute valuation? ( 1 ) Because it uses complex mathematical models that are easier to manipulate.

Why is relative valuation considered more intuitive compared to absolute valuation?
(1) Because it uses complex mathematical models that are easier to manipulate.
(2)Because it is based on historical data and is therefore easier to understand.
(3) Because it involves comparing a company to similar companies or the overall market, making the process more relatable

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!