Market-based valuation

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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

• the risk premium,
• the beta coefficient,
• the stock image coefficient,
• etc.

See also

• List of valuation topics

External link

• stock image and behavioral finance

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