The ________ approach to valuing a business uses the price-earnings ratios of similar businesses to establish the value of a company.
A)balance sheet
B)capitalized earnings
C)discounted future earnings
D)market

Question

Quizplus · Accepted Answer

The market approach to valuing a business compares the business to similar businesses in the market and uses their price-earnings ratios to determine the value of the company. This approach is often considered more reliable as it takes into account the current market conditions and competition.

The ________ Approach to Valuing a Business Uses the Price-Earnings