Market approach for fair value IFRS 13

Do we know that valuation techniques under IFRS 13, The valuation technique should be consistent with the objective of estimating the price at which an orderly transaction to sell the asset, or to transfer the liability, would take place between market participants at the measurement date under current market conditions.

The valuation technique should be consistent with the objective of estimating the price at which an orderly transaction to sell the asset, or to transfer the liability, would take place between market participants at the measurement date under current market conditions.

The market approach is a valuation technique that uses prices and other relevant information derived directly from publicly available information about relevant market transactions. Those market transactions should involve identical or comparable (that is, similar) assets, liabilities or businesses. The market approach might also be relevant for non-financial assets, such as unlisted equities or land and buildings. Some unquoted equity securities might be fair valued using earnings per share multiples derived from comparable quoted equity securities. Land and buildings might be fair valued by reference to prices achieved in sales of comparable properties

Examples of market approach include:
Valuation techniques using market multiples derived from comparable transactions.
Matrix pricing – a mathematical technique used principally to value
some types of financial instruments, such as debt securities, without
relying exclusively on quoted prices for the specific securities, but
rather relying on the securities’ relationship to other benchmark quoted
securities.