The statement that is incorrect regarding trading comparables is profit margins are rarely static over time.
What is trading comparable?
Trading comparables is known to be a form of a market based valuation method or process that is said to be like transaction comparables.
Note that The statement that is incorrect regarding trading comparables is profit margins are rarely static over time and it is not true because they can be static a lot.
See full question below
Which of these statements is incorrect regarding trading comparables?
Select one:
High growth companies typically have higher multiples
Profit margins are rarely static over time
Enterprise value and equity value are usually different
EV multiples grow as the value driver grows
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