Valuing a company relative to other comparable companies is best described as the:

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Relative valuation involves comparing a company's value to that of similar companies in the same industry or sector, using metrics such as price-to-earnings (P/E) ratios, enterprise value-to-EBITDA ratios, and others. This approach contrasts with intrinsic valuation models like the dividend discount model or free cash flow models, which attempt to determine a company's value based on its own expected future cash flows.

Valuing a Company Relative to Other Comparable Companies Is Best