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Market-Based Valuation

What is market-based valuation? The internet has failed me with this one. The CFA books use this term but don’t explain it.

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I think of market-based valuation as trying to determine what an asset might be worth given what assets comparable to it are priced at in the market place today. For example, in the case of stocks, that’d be using relative valuation multiples of companies in similar business lines. 

"Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom." -Viktor Frankl

Ah I see, that makes sense, thanks.