Explain each of the three other approaches to common stock valuation (a) Book value, (b) Liquidation value, and (c) Price earnings (P E) multiples Which of these is considered the best ...

a Book value is the value of the stock in the event all assets are liquidated for their book value a ...

Explain each of the three other approaches to common stock valuation: (a) Book value, (b) Liquidation value,

Question:

Explain each of the three other approaches to valuation:
(a) Book value,
(b) value, and
(c) Price/earnings (P/E) multiples. Which of these is considered the best?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....