Explanation

Price multiples are commonly used for both time-series and cross-sectional analyses:

Time-series analysis: Comparing a company's current multiple (like P/E ratio) to its historical multiples to identify trends and determine if the stock is currently overvalued or undervalued relative to its own history.

Cross-sectional analysis: Comparing a company's multiple to those of its peers or industry competitors to assess relative valuation within the same time period.

Both approaches are valid and widely used in equity valuation:

1. Time-series analysis helps understand how a company's valuation has evolved over time
2. Cross-sectional analysis helps understand how a company is valued relative to its competitors

Therefore, price multiples can be effectively used for both types of analyses, making option C the correct answer.