Value a company off comparable peers. Take the medianpeer multiple and apply it to the target's own fundamental. EV multiples give an enterprise value, so you bridge to equity by subtracting net debt. Equity multiples (P/E, P/S) give the share price directly.
Cheap vs rich peers move the implied value a long way — the multiple imports the peer set's pricing. Then flip to P/E: an equity multiple lands on price directly, with no net-debt bridge.
Match the numerator to the denominator. EV/EBITDA is capital-structure-neutral, so an enterprise-value numerator must sit over a pre-interest measure such as EBITDA. Never pair EV with net income, which is already after interest. P/E and P/S are equity multiples and land on the share price directly.
Reflect: the median resists a single rich or distressed peer that would drag the mean. But every multiple inherits whatever mispricing sits in the comp set. When would you trust a multiple over a full discounted-cash-flow valuation, and when not?