Suppose you were asked to estimate the value of a privately held company that makes household and personal care products. You decide to look at the PE ratios for some major public companies in that space. You find: Procter & Gamble (PG) = 21.39; Colgate-Palmolive (CL) = 30.00; Church & Dwight (CHD) = 22.45. How might you use these PE ratios to estimate the value of the privately held company? What are some problems with this method? What are some of the advantages and disadvantages of using multiples (such as the PE ratio) as compared to using an intrinsic value method based on free cash flows?