Corporate Valuation: Comparable and Absolute Valuation
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Corporate Valuation: Comparable and Absolute Valuation

Intuition Publishing
Updated Sep 24, 2020

A comparable valuation method compares the stock price (or enterprise value) to a figure which comes from the financial statements, while an absolute valuation model estimates a company's intrinsic worth by looking at its projected cash flows. Here we explore the theory behind both types of valuation technique and the link between them.