Valuation techniques are methodologies used to estimate the intrinsic value of a company or its stock, helping investors determine whether an asset is overvalued or undervalued. Two prominent approaches are Discounted Cash Flow (DCF) analysis and valuation using financial ratios. Discounted Cash Flow (DCF) is an intrinsic valuation method that calculates the present value of a company's projected future free cash flows, discounted back to the present using a discount rate, typically the Weighted Average Cost of Capital (WACC). The premise is that a company's true value is the sum of all its future cash flows. This method requires significant assumptions about future growth rates, margins, and the discount rate, making it sensitive to inputs. Valuation Ratios involve comparing a company's financial metrics to those of its peers or industry averages. Common ratios include the Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, Enterprise Value to EBITDA (EV/EBITDA), and Dividend Yield. These ratios provide a quick way to assess relative value but rely on the assumption that comparable companies are truly similar. Combining both DCF for intrinsic value and ratio analysis for relative comparison provides a more robust and holistic valuation perspective.