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 ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training company delivering training to ...

Two camps traditionally exist when it comes to stock valuation: intrinsic vs. relative. Intrinsic valuation involves cash flow projections, estimated growth rates, and present value discounting.

Valuation refers to the process of determining the current worth of an asset or a company. It can be used to determine the fair market value of various items, from financial instruments like stocks ...