Relative Valuation

Equity Valuation in R

Cliff Ang

Senior Vice President, Compass Lexecon

Valuation Using Multiples

  • Relative Valuation is based on the law of one price
  • Identifying comparable companies is crucial
  • P/E and P/B Ratios are two of the most common valuation multiples
  • Resulting valuation is "implied"
Equity Valuation in R

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Equity Valuation in R

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