A valuation theory based on the idea that similar assets sell at similar prices. This assumes that a ratio comparing value to some firm-specific variable (operating margins, cash flow, etc.) is the same across similar firms.
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In other words, the theory is that when firms are comparable, we can use the multiples approach to determine the value of one firm based on the value of another.
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Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. Ratio Analysis Tutorial
This method of valuing a company can make a company look like a bargain when it is not. Relative Valuation: Don't Get Trapped
The P/B ratio can be an easy way to determine a company's value, but it isn't magic! Value By The Book
Learn what the price/earnings ratio really means and how you should use it to value companies. Understanding The P/E Ratio
