PEG ratio analysis suffers from all of the following problems EXCEPT: Accounting earnings are not the same as cash flows or NOPLAT.

  •  A. Accounting earnings are not the same as cash flows or NOPLAT.
  •  B. The assumption of a linear relationship between growth and value multiples.
  •  C. Lack of a time horizon standard.
  •  D. This application of multiples valuation does not attempt to adjust for differing growth expectations.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply