Relative Valuation ANTM TINS INCO NIKL

Table 1.

Relative valuation helps trader/investor to compare one company to its competitors. To make it simple, the one with the lowest PER can be considered as the cheapest one. The target price will be the average PER (industry PER).

Table 1 shows that ANTM and TINS are undervalued by the market. NIKL is overvalued.

NOTE: PER shows people expectations about the stock. If the PER is low, people expect that the company's growth in the future will be slow. If the PER is high, people expect that the company's growth in the future will be high.