Businesses involved in producing goods use tools to determine how much their production methods cost and how much their products will earn. The relative sale method, also known as the relative sales ...

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 ...

Investors very often follow the relative valuation methods - they are easy to find (or calculate) and understand. In my opinion, these methods do not have too much to do with intrinsic values of ...