[Answer] What is one possible weakness of this peer approach to valuation?

Answer: A stock's P/E ratio can remain above or below market average for extended periods.

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What is one possible weakness of this peer approach to valuation? what is one possible weakness of this peer approach to valuation? a) it is a very laborious approach to valuation b ) the estimated growth can be dramatically wrong c ) it only focuses on the statistics of one company d) it doesn't account for industry context Q: What is one possible weakness of this peer approach to valuation ? A: The estimated growth can be dramatically wrong Explain: Prospective P/E multiples are calculated using future earnings. As such they can be dramatically wrong. Relative valuation is quick and easy. It compares industry peers . What is one possible weakness of this peer approach to valuation? A stock's P/E ratio can remain above or below market average for extended periods . What may be a problem of comparing the P/E of a stock to the P/E of the overall market? What is one possible w...

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