What Is the Relative Strength Index (RSI)? The relative strength index (RSI) indicates whether a security, such as a stock, is overbought or oversold. It’s a technical indicator that is a part of a ...

Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...

Toby Walters is a financial writer, investor, and lifelong learner. He has a passion for analyzing economic and financial data and sharing it with others. The real value of an item is its nominal ...

The price-earnings (P/E) ratio, or earnings multiple, is one of the most popular measures of company value. It is computed by dividing the current stock price by earnings per share (EPS) for the most ...

Many business owners who have had their businesses valued remember providing a large amount of information and documents that went into a long and expensive report containing only a few pages of ...

Two camps traditionally exist when it comes to stock valuation: intrinsic vs. relative. Intrinsic valuation involves cash flow projections, estimated growth rates, and present value discounting.