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.
这些模型的基础上，市场是有效的和汇总的基础上的假设，在市场的证券价格的内在价值的无偏估计量。这导致的概念，类似的证券价格应该是相同的。相应的，体育的多种方法，已被认为是应用最广泛的相对估值模型（巴克，1999）。一些分析家的判断该方法要优于基于贴现现金流量法的原理，其他估值模型。该模型也做了各种修改纳入了体育思想和体育在尾随的估价方法。从它的速度和易用性模型的结果的最大优势。除此之外，模型还需要输入数相对较低以及估计，在对比了多期现金流折现模型，需要一个广泛的估计和判断值（蒂特曼和Martin，2011）。有相对估值方法下的其他几个模型，其流行的是市盈率模型（应用最广泛），价格与账面价值的价格销售方法，多途径和最近的价格以现金流量法的出现（费尔南德兹，2002）。分析师不基于该模式下的单一方法的估计，但他们使用不同的模型和计算出安全的加权平均值。这是通过获得的估计，从不同的模型和权重分配得到的范围内实现他们随之而来，其中权重对其完整性的基础上，确定的精度，可靠性和相对重要性。
