"PSG are more similar to Madrid than to Barcelona," Valverde told a news conference on Monday previewing the last 16 first leg at the Mestalla.
"They are a team who have good players up front, who don't mind sitting back and who attack with speed," he added.
"Having the ball doesn't mean that you are dominating them, as they are a dangerous side."
They were hammered 5-0 at home by the Spanish champions in La Liga last month and were also knocked out of the King's Cup by Jose Mourinho's side 3-1 on aggregate.
"What we want is to get through this tie, even though they are the favourites, and go into the quarter-finals," Valverde said.
"We won't settle for just giving a good show of ourselves. We aren't here to look good in defeat. We compete to win.
"They are a club who are pushing to become one of the biggest in Europe, but that doesn't mean anything.
"Over 180 minutes we will see what happens. I don't care that they are favourites. The key is in the game."
"We have a lot of players with speed," the Italian said.
"But our goal is to play football, not just to play on the counter-attack," he added.
"I think this will be a good test for us to evaluate the capacity we have to play our football and not just on the counter but with possession of the ball."
