You have learned about the Price-Earnings (P-E) Multiple Approach, which is a relative approach for stock valuation, and are now ready to apply it to valuing a young but rapidly-growing publicly-held company in the biomedical sector that your company is considering to acquire.  Your target company has been in business for three years since its IPO, and has not recorded a profit yet. As a newly-hired assistant to CFO, you are in charge of valuing your target company. 
Discuss what problem(s) you might encounter in applying the P-E Multiple Approach and what alternative RELATIVE approach(es) you could use in place of the P-E Multiple Approach to value your target company.
Instructions:
Please post your initial response by 23:59 EST Day 3 of the Week, and comments on the posts of at least two classmates by 23:59 EST Due Date.
You must first post your own response directly to the Discussion Topics by Day 3 before accessing other students responses. In addition, you should post at least TWO thoughtful and substantive responses to other classmates answers/comments by the due date in order to earn full 5 points for each Discussion Topic. A mere Yes, I agree or No, I dont agree type of responses will not be given any credit.
Additional bonus credit may be given to substantive responses reflecting additional research with sources of information clearly identified as they are particularly valued and enrich our online learning.