No single valuation method is perfect. Professional analysts triangulate across multiple methods: relative multiples (P/E, EV/EBITDA, P/FCF), absolute valuation (DCF), and sanity checks against historical ranges and peer-group context. When all methods agree the company is cheap, confidence is high; when they agree it's expensive, conviction is also high.

When they disagree, the disagreement itself is information about which assumptions matter and where the analysis needs more work. Triangulation is the discipline that separates rigorous fundamental analysis from single-metric mistakes. The valuation triangle has three corners.

(1) Relative valuation: how does the company's P/E, EV/EBITDA, P/FCF compare to peers and to its own historical range? Is current pricing in the high, middle, or low end of where the market has historically valued similar businesses or this same business? (2) Absolute valuation: DCF based on fundamentals — what is the company actually worth as a function of expected future cash flows discounted at appropriate WACC?