Techical analysis 101: Valuation methods with cases
@Alice Arnault：
Follow me at @Alice Arnault to learn more Saw quite a number of news stories which talk about valuation, so hope to share a bit on this Relative Valuation - estimates the value of an asset by looking at the pricing of assets relative to a common variable like earnings, cash flows, book value or sales. • Most common multiples: P/E, EV/EBITDA, Price/Book Value, EV/Sales, PEG ratio, free cash flow yield, dividend yield Case: In 2020, the average P/E ratio of the S&P 500 index was around 22x, while the historical average is about 15x. This suggested that the market might have been overvalued at that time. • Historical analysis: how does current pricing compare to history Quant: In 2007, just before the financial crisis