单选题 One advantage of price/sales (P/S) multiples over price to earnings (P/E) and price-to-book value (PBV) multiples is that :

A、 P/S can be used for distressed firms.
B、 Regression shows a strong relationship between stock prices and sales.
C、 P/S is more volatile than P/E multiples and, therefore, more reliable for use in valuation.

【正确答案】 A

【答案解析】Unlike the PBV and P/E multiples, which can become negative and not meaningful, the price/sales multiple is meaningful even for distressed firms ( that may have negative earnings or book value).