Which of the following statements best describe the fundamental difference between a Discounted Cash Flow Analysis approach to valuing stocks and a P/E approach to valuing stocks? A) The P/E approach is best because it shows how a stock is priced given the credit rating and therefore interest cost of the company.

B) The Discounted Cash Flow Analysis illustrates the future value of the unlevered free cash flows and the P/E approach illustrates what a companys sales are actually worth.

C) Neither of these approaches are used by serious investors the best method is the Dividend Discount Model approach since dividends are the only cash flows received by holders of a companys common stock.

D) The Discounted Cash Flow Analysis is an intrinsic valuation approach whereas the P/E approach is a relative valuation approach.

E) The Discounted Cash Flow Analysis illustrates the future value of the unlevered free cash flows and the P/E can predict the companys future stock price using forward multiples.