Question
Two frameworks used for valuation are intrinsic valuation - perpetuity method (DCF) and relative valuation - Exit EBITDA Multiple method - (Comps).Which of the following
Two frameworks used for valuation are intrinsic valuation - perpetuity method (DCF) and relative valuation - Exit EBITDA Multiple method - (Comps).Which of the following statements is not correct.
A.DCF is derived from the fundamental analysis of the company's cash flow generation potential.
B.Because the DCF model rarely yields the same value as the Comps model, the DCF model is viewed as having less value when analyzing a firm.
C.In comps, values are typically compared relative to a measure of the firm's profitability.These ratios are called "multiples".
D.Relative valuation is derived by comparing a company to its comparable peers.
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