Price-to-Sales Multiple: Accuracy Statement Analysis | CFA® Level 1 Test Prep

The Least Accurate Statement about the Price-to-Sales Multiple

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Which of the following is the least accurate statement about the price-to-sales multiple?

A. Price-to-sales is a poor valuation technique for growth companies.

B. Sales growth drives all subsequent earnings and cash flows.

C. Revenue has minimal accounting manipulation concerns relative to other numbers. A

Click on the arrows to vote for the correct answer

A. B. C.

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