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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA).

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA).

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Company Valuation Methods—Complete List and Guide

Valutico

There are three primary approaches under which most valuation methods sit, which include the income approach, market approach, and asset-based approach. The income approach estimates value based on future earnings, using techniques like the discounted cash flow analysis. How Do I Value a Business?