One advantage of using price-to-book value (PBV) multiples for stock valuation is that:

One advantage of using price-to-book value (PBV) multiples for stock valuation is that:




A) it is a stable and simple benchmark for comparison to the market price.


B) most of the time it is close to the market value.


C) book value of a firm can never be negative.



Answer: A


Learn More :