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CFA Level 2
Equity Investments

Identifying Key Market-Based Valuation Ratios

Very Easy Equity Valuation Applications Market-based Valuation

Market-based valuation techniques are widely used by investors to estimate the value of equity securities. One common method involves comparing a company's valuation ratios to those of its peers in the same industry. What is the primary valuation ratio used in market-based valuation to compare relative value across companies?

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