Set out why one might value a stock with dividend yield or alternative price multiples and what can go wrong

Each multiple has its rationale and its drawbacks. P/E links price to earning power but fails when earnings are negative, and earnings can be volatile or managed. P/B works when earnings are negative and for companies whose assets are mostly financial, such as banks, but book value ignores many intangibles and depends on accounting choices. P/S works for loss-making companies and sales are harder to manipulate, but sales ignore the cost structure, so strong sales need not mean profit. Price to cash flow is less exposed to accrual manipulation, though simple cash flow measures ignore investment. Dividend yield is part of total return but ignores capital gains, and a high yield may signal an expected cut. The trap is using one multiple regardless of the company.