Market-based valuation

Source: Wikipedia, the free encyclopedia.

A 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

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

beta coefficient
.

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

See also

External links