Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...

Learn what the relative strength index (RSI) is, how it works, and how to read overbought and oversold signals, along with the formula behind this popular indicator.

Toby Walters is a financial writer, investor, and lifelong learner. He has a passion for analyzing economic and financial data and sharing it with others. The real value of an item is its nominal ...

Two camps traditionally exist when it comes to stock valuation: intrinsic vs. relative. Intrinsic valuation involves cash flow projections, estimated growth rates, and present value discounting.

The core purpose of a business valuation is to establish an unbiased and justifiable estimate of the economic value of a business entity. Here’s why it is important: Transparency: It provides clarity ...

Recent market volatility has opened up valuation divergences between very similar CEFs, creating opportunities for switches or outright holds. This offers income investors an opportunity to pick up ...