CFA Level 2
Equity Investments

Market-Based Valuation Ratio Identification

Very Easy Equity Valuation Applications Market-based Valuation

Market-based valuation is a common method for assessing the value of equity investments by comparing a company's financial metrics to those of similar companies in the market.

Which of the following valuation ratios is typically used in a market-based valuation analysis to gauge a company's relative value compared to its peers?

Hint

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