能否讲一下选模型的方法，在什么情况下选什么不选什么？

问题如下：

8. Which valuation model would the director of research most likely recommend Lee use to estimate the value of VEGA?

选项：

Free cash flow

Dividend discount

P/E relative valuation

解释：

A is correct.

The broad criteria for model selection are that a valuation model be consistent with the characteristics of the company being valued,appropriate given the availability and quality of the data and consistent with the purpose of the valuation. VEGA currently has negative earnings,making the use of P/E relative valuation difficult if not impossible. As VEGA does not pay a dividend and is not expected to for the foreseeablefuture; this would make the application of a dividend discount model problematic. However, the lack of a dividend would not be an obstacle tofree cash flow valuation. Furthermore, the director of research has advised that the possibility that competitors may seek to acquire VEGA betaken in to account in valuing VEGA. The reading states that free cash flow valuation can be appropriate in such circumstances. Thus, the directorof research would be most likely to recommend free cash flow valuation.