1. Introduction
A volume-weighted average price (VWAP) is a trading indicator that presents the average price a financial instrument has traded at throughout the day, taking into consideration both volume and price. Providing traders with insights into both trend and value, the indicator is therefore widely used.
This measure helps investors and analysts evaluate the current price of a stock and determine whether it is relatively overpriced or underpriced compared to the average trading price for the day. Often this information is used to facilitate the entry or exit of a position.
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Previously: 
 Stock valuation methods 
 Absolute valuation: Analysts’ secret weapon 
To value a company, we can apply many different techniques, such as the absolute valuation method we've talked about before.
Relative value is the opposite of absolute value. Absolute value looks for the intrinsic value of an asset or company, relative value is based on the value of other similar companies.
Types of relative valuation models
There are ma...