In the market approach,the technique to calculate the value of a company is:
A)ROI.
B)P/E.
C)ROA.
D)P/A.

Name: In the market approach,the technique to calculate the value of a company is: A)ROI. B)P/E. C)ROA. D)P/A.
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Question

Quizplus · Accepted Answer

The market approach involves analyzing the valuation multiples of similar publicly traded companies to determine the value of the subject company. The most common multiple used is the price-to-earnings (P/E) ratio. Therefore, the correct choice is B - P/E.

In the Market Approach,the Technique to Calculate the Value of a Company