This approach is best described as the method based on forecasted fundamentals. The analyst is using a fundamental valuation model (residual income model) to derive an intrinsic value, then converting it to a justified P/B ratio that reflects the company's fundamental characteristics. This justified multiple is then compared to the actual market multiple to assess valuation. Option A (method of comparables) would involve comparing the company's actual multiples directly to peer companies without fundamental modeling. Option C is incorrect as this is not a momentum-based approach.