Asset evaluation refers to the evaluation of different types of assets to determine their value and market price. Asset evaluation is widely used in finance, finance, investment and other fields, among which the most basic evaluation method is market comparison method.

Market comparison method is an asset evaluation method based on market transactions. This method determines the value of assets by comparing the market transactions that have occurred. Specifically, the market comparison method is to determine the market value of the target assets by referring to the transaction price of the same type of assets in the market. The core of this method is to determine the value of assets by using the transactions that have occurred in the market, so it has high reliability and accuracy.

The basic idea of market comparison method is to determine the market value of target assets by comparing the prices of target assets with other assets of the same type in the market. This method is usually used to evaluate assets, such as real estate and stocks. For example, in real estate appraisal, the appraiser will compare the transaction price of the target real estate with the transaction price of the same type nearby, so as to determine the market value of the target real estate. In stock evaluation, the appraiser will compare the stock price of the target company with that of other companies in the same industry, so as to determine the market value of the target company.

The advantages of market comparison method are simple, accurate and reliable, which can provide more accurate market value information. However, this method also has some limitations, such as the shortage of the same type of assets in the market and the large fluctuation of market transaction prices, which will affect the accuracy of this method.

To sum up, the market comparison method is one of the most basic and commonly used methods in asset appraisal. This method determines the market value of the target asset by referring to the transaction price of similar assets in the market. Although this method has some limitations, its simplicity, accuracy and reliability make it widely used in asset appraisal.