Market-based valuation methods are less prone to manipulation than discounted cash flow methods because they require a more detailed statement of assumptions.

Question

Quizplus · Accepted Answer

Market-based valuation methods rely on market prices and comparables, which can fluctuate due to market conditions and may not require a detailed statement of assumptions, unlike discounted cash flow methods that necessitate explicit assumptions about future cash flows and growth rates.

Market-Based Valuation Methods Are Less Prone to Manipulation Than Discounted