A relatively simple method of valuing a stock is to apply the mean price-earnings (PE)ratio of all publicly traded competitors in the respective industry to the firm's expected earnings for the year.

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This method, known as the "comparables" approach, involves using the average PE ratio of a group of similar companies to estimate the value of a stock based on its expected earnings. It's a common technique in equity valuation.

A Relatively Simple Method of Valuing a Stock Is to Apply