Relative Valuation

Categories: Finance,

Relative valuation is a generic term that refers to the notion of comparing the price of an asset to the market value of similar assets. In the field of securities investment, the idea has led to important practical tools, which could presumably spot pricing anomalies. These tools have subsequently become instrumental in enabling analysts and investors to make vital decisions on asset allocation. Additional - what is the meaning of Relative Valuation? In equities, the concept separates into two areas—one pertaining to individual equities and the other to indices.