"Market-Based Evaluation Method"

Examine the usefulness and validity of the market-based valuation method.

• Explain how this method can yield the most accurate results.
• Discuss the challenges associated with using the market-based valuation method. How might analysts address those challenges?
• Evaluate the impact of information availability on market efficiency in todays economy. Indicate whether it has a positive or negative impact on most companies. Explain your rationale.