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 ...

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 ...

Toby Walters is a financial writer, investor, and lifelong learner. He has a passion for analyzing economic and financial data and sharing it with others. The real value of an item is its nominal ...