Relative Valuation (Multiples)

Valuing a company by comparing it to similar ones — fast, useful, easy to misuse.

• The P/E RatioThe most quoted, most misunderstood number in investing. What it means and what it hides.7 min
• Price-to-Book (P/B)Comparing price to net worth — handy for banks and asset-heavy businesses.6 min
• EV/EBITDAA multiple that accounts for debt, letting you compare companies fairly across capital structures.7 min
• The PEG RatioP/E adjusted for growth — why a high P/E can still be cheap.6 min
• Dividend Yield as a Valuation ToolWhat the payout tells you about value, and the yield trap that catches beginners.6 min
• The Traps of Comparing MultiplesCheap for a reason, or genuinely cheap? Why context decides everything.7 min