How will you use relative valuation for different sectors

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Relative valuation involves comparing the valuation of companies within the same sector to determine their relative value.

Identify comparable companies within the same sector
Calculate key valuation metrics such as P/E ratio, EV/EBITDA, and PEG ratio
Compare the valuation metrics of the target company to its peers to determine if it is undervalued or overvalued
Consider industry-specific factors that may impact valuation multiples
Adjust valuation multiples based on differences in growth prospects, risk profiles, and other relevant factors