These models are based on the assumptions that the markets are efficient and on an aggregate basis, the security prices in the markets are unbiased estimators of the intrinsic values. This leads to the notion that prices of similar securities should be identical. Correspondingly, the PE multiple approach has been seen to be the most widely applied relative valuation model (Barker, 1999). Several analysts judge this approach to be superior to other valuation models based on the tenets of discounted cash flow. Various modifications of the model have also been done to incorporate the ideas of forward PE and trailing PE in the valuation methodology. The biggest advantage of the model results from its speed and ease of applicability. Besides this, the model also requires relatively lower number of inputs as well as estimates, in contrast to the multi period discounted cash flow models which require a wide range of estimates and judgmental values (Titman & Martin, 2011). There are several other models under the relative valuation approach, the popular ones of which are the Price to Earnings ratio model (the most widely used), Price to Book Value Approach, Price to Sales multiple approach and recently the advent of the Price to Cash flow Approach (Fernandez, 2002). Analysts do not base their estimates on a single method under this approach, but they use various models and calculate the weighted average value of the security. This is accomplished by obtaining the range of estimates that are obtained from various models and consequent allocation of weights to them, wherein the weights are determined on the basis of their completeness, accuracy, reliability and relative importance.