Market-based valuation

Market-based valuation

Market-based valuation is a form of stock valuation that refers to market indicators, also called "extrinsic" criteria (i.e., not related to economic fundamentals and account data, which are "intrinsic" criteria).

Examples of market valuation methods

Technical analysis is the most characteristic market-based method, although it focuses more on timing than pricing.

Also, rough market comparison tools such as the PE ratio and the PEG ratio are used.

More sophisticated forms of analysis (fundamental analysis, quantitative analysis and behavioral analysis) use also some market criteria, such as


Those criteria might be "tilted" in some valuation models in order to anticipate their possible variation in the next future or to adapt them to their historical statistical range or mean

See also

External links


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