Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...

Valuation determines the current or future worth of businesses, blending science and art. Investors use intrinsic and relative valuation methods to gauge investment value. Warren Buffett's profitable ...

Relative value determines an asset’s value when accounting for the value of similar assets. Relative value is not to be confused with an asset’s absolute value. That only considers the actual asset’s ...