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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios and apply them to the target company’s financials. Pros and Cons of the Comparable Companies Analysis Pros Cons Market-Based: Reflects current market conditions and investor sentiment.