Relative Value

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Dictionary Says

Definition of 'Relative Value'

A method of determining an asset's value that takes into account the value of similar assets. In contrast, absolute value looks only at an asset's intrinsic value and does not compare it to other assets. Calculations that are used to measure the relative value of stocks include the enterprise ratio and price-to-earnings ratio.
Investopedia Says

Investopedia explains 'Relative Value'

When value investors are considering which stocks to invest in, they do not just look at the financial statements of the companies whose stocks they are interested in buying to make sure that the company is profitable and well-managed and that the stock is underpriced. They also look at the financial statements of competing companies to assess the stock's value relative to its peers.

Search results for

'Relative Value'

  • Relative Valuation Of Stocks Can Be A Trap

    http://www.investopedia.com/articles/fundamental/03/111203.asp
    ... or undervaluation. A relative value trap is a company that looks like a
    bargain compared to its peers, but is not. Investors can ...

  • Digging Into Book Value

    http://www.investopedia.com/articles/stocks/07/book_value.asp
    ... often compare BVPS to the market price of the stock in the form of the market
    price/BVPS ratio to attribute a measure of relative value to the shares. ...

  • How To Value A Real Estate Investment Property

    http://www.investopedia.com/articles/mortgages-real-estate/11/valuing-real-estate.asp
    ... Equity valuation is typically conducted through two basic methodologies: absolute
    value and relative value. The same is true for property assessment. ...

  • Relative Valuation: Using Stocks To Value Other Stocks

    http://www.investopedia.com/articles/stocks/11/relative-valuation-stocks-valuing-stocks.asp
    Relative Valuation: Using Stocks To Value Other Stocks. September 19 2011 |
    Filed Under » Stocks. Relative valuation, also referred ...

  • Value Investing + Relative Strength = Higher Returns

    http://www.investopedia.com/articles/financial-theory/08/value-investing-relative-strength.asp
    Value Investing + Relative Strength = Higher Returns. August 27 2008 |
    Filed Under » Financial Theory, Warren Buffett. One needs ...

  • Analyzing The Price-To-Cash-Flow Ratio

    http://www.investopedia.com/articles/stocks/11/analyzing-price-to-cash-flow-ratio.asp
    ... Check out Valuing Firms Using Present Value Of Free Cash Flows.) Relative Value
    Analysis Once the P/CF ratio is calculated, the initial result does not ...

  • How Bond Market Pricing Works

    http://www.investopedia.com/articles/bonds/07/pricing_conventions.asp
    ... Yield is also used as a relative value measure between bonds. ... The spread is used
    both as a pricing mechanism and as a relative value comparison between bonds. ...

  • Understanding The Consumer Confidence Index

    http://www.investopedia.com/articles/05/010604.asp
    ... The Calculations Once the data has been gathered, a portion known as the "relative
    value" is separately calculated for each question; each question's positive ...

  • Find The Right Bond At The Right Time

    http://www.investopedia.com/articles/bonds/08/bond-choice.asp
    ... yield. As a measure of relative value, the yields of most bonds are quoted
    as a yield spread to a comparable US Treasury bond. Example ...

  • What do the terms weak dollar and strong dollar mean?

    http://www.investopedia.com/ask/answers/06/strongweakdollar.asp
    The two terms, weak dollar and strong dollar, are generalizations used in the foreign
    exchange market to describe the relative value and strength of. ...

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