An advocate of discounted cash flow analysis says, Residual earnings valuation does not work well for companies

Question:

An advocate of analysis says, "Residual earnings valuation does not work well for companies like Coca-Cola, Cisco Systems, or Merck, which have substantial assets, like brands, R&D assets, and entrepreneurial know-how off the books. A low book value must give you a low valuation." True or false?

Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...