Equity Analysis: P/E Ratio and Comparable Valuation
Interactive

Equity Analysis: P/E Ratio and Comparable Valuation

Intuition Publishing
Updated Sep 24, 2020

The comparable valuation approach uses the price/earnings ratios of a company's peers to estimate a fair value of that company's stock. Here we present the comparable technique, show how to select peer companies, and give an example of a fair value calculation using the approach.