Relative Valuation compares a company's valuation against the median multiples of a company's peer group.
Unlike DCF or EPV valuation, comparable company analysis uses a relative approach based on the market valuation of similar companies. It uses one or more average valuation ratios of a set of publicly traded companies (in this case, the sector) and applies that ratio to the company being valued.
* Disclaimer: These valuation tools are provided solely for informational & educational purposes so that users can easily run their own valuations. The pre-defined values are simply a starting point based on global assumptions that we have applied across the entire market – users should amend them as they see fit and not regard them as a substitute for their own judgment. Any resulting valuation outputs are necessarily generic and are not endorsed for a given stock by Stockopedia.
