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Author Question: The price-to-cash-flow method of stock valuation generally (Read 58 times)

isam

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Question 1

For which one of the following situations will the price-to-sales valuation model work but the dividend and cash flow models will not?
◦ mature firm with minimal growth opportunities
◦ water-powered electric utility company
◦ newly-formed biotechnology company with negative earnings
◦ top-performing firm in a mature industry

Question 2

The price-to-cash-flow method of stock valuation generally
◦ uses either EBITDA or operating cash flow from the cash flow statement as a measure of cash flow.
◦ relies on historical cash flows.
◦ produces a cash flow multiple that is greater than the P/E multiple.
◦ applies the P/E multiple to the cash flow per share value.


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Marked as best answer by isam on Mar 29, 2022

mgranuc

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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isam

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Reply 2 on: Mar 29, 2022
Great answer, keep it coming :)


isabelt_18

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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