Certain valuation metrics used in relative valuation can be derived from certain discounted cash flow methods, for example:

Select one:

a. The relative valuation technique based on trailing Price-to-Earnings (P/E) ratio can be derived from the Dividend Discount Model.

b. The relative valuation technique based on forward Price-to-Earnings (P/E) ratio can be derived from the Free Cash Flow to Equity Model.

c. The relative valuation technique based on trailing Price-to-Book (P/B) ratio can be derived from the Residual Income Model.

d. The relative valuation technique based on forward Price-to-Book (P/B) ratio can be derived from the Free Cash Flow to Firm Model.

e. None of the options. The relative valuation approach is independent of the discounted cash flow approach.