The study aimed to distinguish between the indicators of absolute and relative valuation, and then to show the effect of some of those indicators on the market value of shares, the sample of the study, the Gordon model was chosen as an independent variable because it is one of the most used models in the financial literature and expresses absolute evaluation models, and three indicators were chosen as explanatory variables affecting the market value, which are the P/E Ratio, the ratio of the market value to the book value and earnings per share. In order to achieve the objectives of the study, the quantitative method was relied upon using the multiple regression model to test the study hypothesis. The study was based on the financial statements of companies listed on the Iraq Stock Exchange during the period between 2012-2019, as well as the closing prices of shares published on the official website of the Iraq Stock Exchange. Where the study sample was represented by (7) corporates listed in the market from different sectors, and the number of observation (32) for each corporate. The results of the study indicated the superiority of the relative valuation indicators (P/E Ratio, market value to book value ratio, and earnings per share) as a result of its financial and statistical importance in explaining the changes in the market values of stock prices.