Which of the following statements is FALSE about valuation based on comparable firms? A. We can estimate the value of a firm's shares by multiplying its current earnings per share by the average P/E ratio of comparable firms. Although valuation multiples technique is simple to use, it relies on some very strong assumptions about the similarity of the comparable firms to the firm you are valuing. B. c. Using multiples will not help us determine if an entire industry is overvalued. None of the above. D. >> Question 4 of 15 A Moving to another question will save this response. Close Window