Sometimes Analysts Use Other Ratios Such as Price-To-Book or Price-To-Sales

Sometimes analysts use other ratios such as price-to-book or price-to-sales ratio. Which of the following is a weakness of the use of these ratios?

A) Some companies are structured very differently, especially across industries.
B) A price-to-book value less than one cannot be assessed.
C) A high price-to-sales ratio cannot be assessed.
D) The price-to-sales ratio cannot be used for companies that report a net loss.

Correct Answer:

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