It’s important for a financial analyst to understand the main differences between intrinsic and relative valuation. Which of the following are differences between intrinsic and relative valuation? Select ALL that apply.Relative valuation is more likely to reflect the market’s “mood”Intrinsic valuation can be used to value “going concerns”Relative valuation can be used to value “going concerns”Intrinsic valuation looks at a company’s fundamentals in relative isolation

Relative valuation is more likely to reflect the market’s “mood”: This statement is correct. Relative valuation models, such as the Price/Earnings ratio, are based on market prices, and therefore they are influenced by the overall sentiment or "mood" of the market.

Intrinsic valuation can be used to value “going concerns”: This statement is also correct. Intrinsic valuation, such as the Discounted Cash Flow model, is based on the company's ability to generate cash flows in the future. Therefore, it is suitable for valuing companies that are "going concerns", i.e., companies that are expected to continue operating in the foreseeable future.

Relative valuation can be used to value “going concerns”: This statement is correct as well. Relative valuation can be used to value any company, including "going concerns", by comparing it to similar companies in the market.

Intrinsic valuation looks at a company’s fundamentals in relative isolation: This statement is correct. Intrinsic valuation is based on the company's own financial and operational data, without considering the market prices of similar companies. Therefore, it can be said that intrinsic valuation looks at a company's fundamentals in relative isolation.